Method and system for allocating funds over a plurality of time deposit instruments in depository institutions

ABSTRACT

A method, system and program product, the method in one embodiment comprising: A method, comprising: accessing databases comprising: client information for each of a plurality of respective clients, comprising a balance of funds of the client; a distribution percent value, Xi, for tranches; information for each of multiple government backed-insured aggregated time deposit instruments holding a tranche of client funds, comprising: a rate; an identification of the depository institution; a term; and determining a given client available distribution amount, Di; determining an amount of a client tranche to be deposited in each of Ni depository institutions based at least in part on the percentage, Xi, in order that the client tranches are approximately equal and are insured; determining Ni depository institutions to distribute the client tranches; allocating substantially equally respective client tranches to the Ni depository institutions; generating data for instructions to transfer the respective client tranches; updating, the databases.

CROSS-REFERENCE TO RELATED PATENT APPLICATIONS

This application is a Continuation of U.S. application Ser. No.13/842,630, filed Mar. 15, 2013, incorporated herein by reference in itsentirety, which is a Continuation of U.S. application Ser. No.13/735,631, filed Jan. 7, 2013, incorporated herein by reference in itsentirety, which is a Continuation of U.S. application Ser. No.12/953,221, filed Nov. 23, 2010, incorporated herein by reference in itsentirety, which claims priority from Provisional Application U.S.Application 61/264,077, filed Nov. 24, 2009, incorporated herein byreference in its entirety.

FIELD OF THE INVENTION

The field of the invention relates generally to administering anallocation of funds for the purchase of time deposit instruments at aplurality of depository institutions and possibly other financialinstruments.

SUMMARY OF THE INVENTION

Briefly, in one embodiment, a method is disclosed comprising: accessing,by one or more computers, one or more electronic databases, stored onone or more computer-readable media, comprising: (1) client informationfor each of a plurality of respective clients, i, comprising informationon client funds held through a program in each of a plurality ofdepository institutions participating in the program, with informationfor a respective client comprising one or more of the following items:(i) a balance of funds of the client held through the program in each ofmultiple of the depository institutions holding funds of the respectiveclient; (ii) a distribution percent value, X_(i), of a given clientdeposit amount, to be distributed in tranches to each of N_(i)depository institutions; (2) information for each of multiple governmentbacked-insured aggregated time deposit instruments holding a tranche ofclient funds, comprising: (i) a rate for the respective aggregated timedeposit instrument; (ii) an identification of the depository institutionholding the respective aggregated time deposit instrument; (iii) a termof the respective aggregated time deposit instrument holding funds ofthe respective client; performing the following steps for each client,i, of multiple of the clients: (1) determining, by the one or morecomputers, a given client available distribution amount, D_(i), for therespective client, i, comprising funds to be distributed over N_(i) ofthe depository institutions for the respective client; (2) determining,by the one or more computers, an amount of a client tranche to bedeposited in each of N_(i) depository institutions based at least inpart on the percentage, X_(i), and the respective client availabledistribution amount, D_(i); (3) determining, based at least in part onthe percentage X_(i), a value of N_(i) depository institutions for therespective client, to distribute the client tranches; (4) allocating, bythe one or more computers, respective client tranches to the N_(i)depository institutions determined for the client, i; generating, by theone or more computers, data for instructions to transfer the respectiveclient tranches and to purchase one or more financial instruments ineach of the respective N_(i) depository institutions, comprising apurchase of one or more aggregated time deposit instruments at multipleof the respective N_(i) depository institutions; and updating, by theone or more computers, one or more of the electronic databases withupdate data for each of multiple of the clients, i, with the update datafor each of the multiple clients, i, comprising data for respectiveclient tranches transferred or to be transferred to purchase the one ormore depository instruments at the respective N_(i) depositoryinstitutions for the client.

In a further embodiment, the aggregated time deposit instruments holdingthe tranches may comprise one or more selected from the group of bonds,treasury bills, and certificates of deposit.

In a further embodiment, the generating instructions step comprisesgenerating an instruction to transfer at least one of the respectiveclient tranches for purchase for the client at one or more of the N_(i)depository institutions a different type of depository instrumentrelative to the time deposit instrument where one or more withdrawalscan be made without penalty.

In a yet further embodiment, the method comprises: receiving a requestto withdraw an amount of funds for a given one of the clients; andgenerating, by one or more computers, data for an instruction based atleast in part on the amount of the request to withdraw, to be taken fromone or more of the different type of depository instrument.

In a yet further embodiment, the different type of depository instrumentis an interest-bearing aggregated deposit account holding funds of aplurality of the clients and is insured by the Federal Deposit InsuranceCorporation.

In a yet further embodiment, the different type of depository instrumentis an aggregated money market deposit account.

In a yet further embodiment, the method comprises: aggregating, by theone or more computers, the respective client tranches of multiple of thedifferent clients into a plurality of respective purchase amounts topurchase respective aggregated time deposit instrument from multiple ofthe depository institutions; and generating data for instructions totransfer the respective purchase amounts to the respective depositoryinstitutions.

In a yet further embodiment, the method comprises: selecting respectiveclient tranches of multiple of the respective clients for aggregationinto the respective purchase amounts for purchase of the aggregated timedeposit instruments from multiple of the depository institutions based,at least in part, on one or more criteria. In one embodiment, onecriterion is that only client tranches from client availabledistribution amounts, D_(i), above a threshold amount, are aggregatedinto the respective purchase amounts for purchase of the aggregated timedeposit instruments from the multiple depository institutions. Inanother embodiment, one criterion is that only client tranches fromclient available distribution amounts, D_(i), associated in the one ormore databases with a particular source institution are aggregated intothe respective purchase amounts for purchase of the aggregated timedeposit instruments from the multiple depository institutions. Inanother embodiment, one criterion is a term requested by the client forthe client available deposit amount, D_(i), meets at least onepredetermined criterion.

In a yet further embodiment, the method comprises: purchasing theaggregated time deposit instrument electronically by the one or morecomputers and via one or more electronic networks.

In a yet further embodiment, the method comprises: receiving an orderfrom a respective one of the depository institutions that is a sourceinstitution to distribute one or more client available distributionamounts, D_(i) of funds of clients of the respective source depositoryinstitution, for the purchase of a plurality of aggregated time depositinstruments; wherein the one or more databases further compriseinformation designating a source depository institution for each ofmultiple of the respective client available distribution amounts, D_(i);and wherein the allocating step further comprises: selecting, by the oneor more computers, at least one of the depository institutionsparticipating in the program for purchase of one or more aggregated timedeposit instruments based, at least in part, on whether or not one ormore orders have been received from the respective at least onedepository institution to distribute one or more client availabledistribution amounts, D_(i), of clients of that respective onedepository institution for the purchase of a plurality of aggregated ornon-aggregated financial instruments at other of the depositoryinstitutions participating in the program.

In a yet further embodiment, the selecting of the at least onedepository institution for the purchase of one or more aggregated timedeposit instruments is further based, at least in part, on whether atotal of the one or more client available distribution amounts, D_(i),of funds received from the respective at least one depositoryinstitution and distributed to other depository institutions in theprogram, is more than an amount that the respective at least onedepository institution has received in client tranches associated withother source institutions participating in the program.

In a yet further embodiment, the method comprises: selecting, by the oneor more computers, multiple of the depository institutions in theprogram for the purchase of one or more aggregated time depositinstruments based, at least in part, on how close a rate and term of anaggregated time deposit instrument available from the respective onedepository institution matches a rate promised to the respective client,i; aggregating, by the one or more computers, the respective clienttranches of multiple of the different clients into a plurality ofrespective purchase amounts to purchase respective aggregated timedeposit instruments from the multiple respective selected depositoryinstitutions; and generating data for instructions to transfer therespective purchase amounts to the respective selected depositoryinstitutions.

In a yet further embodiment, the method comprises: selecting, by the oneor more computers, at least one of the depository institutions for thepurchase of one or more time deposit instruments based, at least inpart, on a stability grade rating for the respective at least onedepository institution.

In a yet further embodiment, the one or more databases further comprisedata on a source institution for each of a plurality of the clientavailable distribution amounts, D_(i); and further comprising:selecting, by the one or more computers, one or more of the depositoryinstitutions for the purchase of one or more aggregated time depositinstruments based, at least in part, on whether the respectivedepository institution is affiliated with the source institution for oneor more of the client available distribution amounts, D_(i) to be usedto purchase the one or more aggregated time deposit instruments;aggregating, by the one or more computers, the respective clienttranches of multiple of the different clients into a plurality ofrespective purchase amounts to purchase respective aggregated timedeposit instruments from the multiple respective selected depositoryinstitutions; and generating data for instructions to transfer therespective purchase amounts to the respective selected depositoryinstitutions.

In a yet further embodiment, the government backed insurance is FederalDeposit Insurance Corporation (FDIC) insurance.

In a yet further embodiment, the method comprises: determining, by theone or more computers, a fee for facilitating purchases of time depositinstruments and other depository instruments based on one or morecriteria. In one embodiment, the fee is determined by comparing theclient available distribution amount, D_(i), to thresholds set forth ina tier table.

In a yet further embodiment, the method comprises: determining clienteligibility for having a given client available distribution amount,D_(i), distributed in tranches among N_(i) depository institutions,based on one or more criteria; aggregating, by the one or morecomputers, respective client tranches of multiple of the differentclients that are determined to be eligible, to form a plurality ofrespective purchase amounts to purchase respective aggregated timedeposit instruments from the multiple respective selected depositoryinstitutions; and generating data for instructions to transfer therespective purchase amounts to the respective selected depositoryinstitutions. In one embodiment, one criterion comprises whether theclient available distribution amount, D_(i), for a given client equalsor exceeds a threshold amount. In another embodiment, one criterioncomprises a relationship level with one of the depository institutions.

In yet a further embodiment, the method comprises: reallocating funds ofa first client from a respective time deposit instrument to a non-timedeposit financial instrument, and allocating funds of a second client tothe respective time deposit instrument in place thereof; and withdrawingan amount of the funds of the first client from the non-time depositfinancial instrument.

In a yet further embodiment, a system is disclosed, comprising: one ormore computers comprising memory wherein the memory storescomputer-readable instructions comprising program code that, whenexecuted, cause the one or more computers to perform the steps:accessing, by the one or more computers, one or more electronicdatabases, stored on one or more computer-readable media, comprising oneor more of the following items: (1) client information for each of aplurality of respective clients, i, comprising information on clientfunds held through a program in each of a plurality of depositoryinstitutions participating in the program, with information for arespective client comprising: (i) a balance of funds of the client heldthrough the program in each of multiple of the depository institutionsholding funds of the respective client; (ii) a distribution percentvalue, X_(i), of a given client deposit amount, to be distributed intranches to each of N_(i) depository institutions; information for eachof multiple government backed-insured aggregated time depositinstruments holding a tranche of client funds, comprising: (i) a ratefor the respective aggregated time deposit instrument; (ii) anidentification of the depository institution holding the respectiveaggregated time deposit instrument; (iii) a term of the respectiveaggregated time deposit instrument holding funds of the respectiveclient; and performing the following steps for each client, i, ofmultiple of the clients: (1) determining, by the one or more computers,a given client available distribution amount, D_(i), for the respectiveclient, i, comprising funds to be distributed over N_(i) of thedepository institutions for the respective client; (2) determining, bythe one or more computers, an amount of a client tranche to be depositedin each of N_(i) depository institutions based at least in part on thepercentage, X_(i), and the respective client available distributionamount, D_(i); (3) determining, based at least in part on the percentageX_(i), a value of N_(i) depository institutions for the respectiveclient, to distribute the client tranches; (4) allocating, by the one ormore computers, respective client tranches to the N_(i) depositoryinstitutions determined for the client, i; and generating, by the one ormore computers, data for instructions to transfer the respective clienttranches and to purchase one or more financial instruments in each ofthe respective N_(i) depository institutions, comprising a purchase ofone or more aggregated time deposit instruments at multiple of therespective N_(i) depository institutions; and updating, by the one ormore computers, one or more of the electronic databases with update datafor each of multiple of the clients, i, with the update data for each ofthe multiple clients, i, comprising data for respective client tranchestransferred or to be transferred to purchase the one or more depositoryinstruments at the respective N_(i) depository institutions for theclient.

In a yet further embodiment, a distribution total percent value, X_(i),for a first group of depository institutions N_(i), is obtained, and adistribution total percent value, Y_(i), for a second group ofdepository institutions, M_(i), is obtained, for a respective client.The distribution total percent value, X_(i), of the client availabledeposit amount, D_(i), is to be allocated in tranches among the N_(i)depository institutions, e.g., D_(i) times X_(i), divided by the numberof depository institutions, N_(i). Likewise, the distribution totalpercent value, Y_(i), of the client available deposit amount, D_(i), isto be allocated in tranches among the M_(i), depository institutions,e.g., D_(i) times Y_(i), divided by the number of depositoryinstitutions, M_(i). Note however, that the allocation of the percentageX_(i) among the depository institutions N_(i) may be unequal. Likewise,the allocation of the percentage Y_(i) among the depository institutionsM_(i) may be unequal. Note that various permutations of this concept maybe implemented in embodiments of the invention, as described in thespecification.

In yet a further embodiment, a program product is disclosed fordistributing respective client funds associated with a plurality ofrespective clients, comprising: at least one computer-readable mediahaving computer-readable program code embodied therein or among them ifmore than one, to be executed by a computer, for causing one or morecomputers to perform the method: accessing, by one or more computers,one or more electronic databases, stored on one or morecomputer-readable media, comprising: (1) client information for each ofa plurality of respective clients, i, comprising information on clientfunds held through a program in each of a plurality of depositoryinstitutions participating in the program, with information for arespective client comprising one or more of the following items: (i) abalance of funds of the client held through the program in each ofmultiple of the depository institutions holding funds of the respectiveclient; (ii) a distribution percent value, X_(i), of a given clientdeposit amount, to be distributed in tranches to each of N_(i)depository institutions; (2) information for each of multiple governmentbacked-insured aggregated time deposit instruments holding a tranche ofclient funds, comprising: (i) a rate for the respective aggregated timedeposit instrument; (ii) an identification of the depository institutionholding the respective aggregated time deposit instrument; (iii) a termof the respective aggregated time deposit instrument holding funds ofthe respective client; performing the following steps for each client,i, of multiple of the clients: (1) determining, by the one or morecomputers, a given client available distribution amount, D_(i), for therespective client, i, comprising funds to be distributed over N_(i) ofthe depository institutions for the respective client; (2) determining,by the one or more computers, an amount of a client tranche to bedeposited in each of N_(i) depository institutions based at least inpart on the percentage, X_(i), and the respective client availabledistribution amount, D_(i); (3) determining, based at least in part onthe percentage X_(i), a value of N_(i) depository institutions for therespective client, to distribute the client tranches; (4) allocating, bythe one or more computers, respective client tranches to the N_(i)depository institutions determined for the client, i; generating, by theone or more computers, data for instructions to transfer the respectiveclient tranches and to purchase one or more financial instruments ineach of the respective N_(i) depository institutions, comprising apurchase of one or more aggregated time deposit instruments at multipleof the respective N_(i) depository institutions; and updating, by theone or more computers, one or more of the electronic databases withupdate data for each of multiple of the clients, i, with the update datafor each of the multiple clients, i, comprising data for respectiveclient tranches transferred or to be transferred to purchase the one ormore depository instruments at the respective N_(i) depositoryinstitutions for the client.

In a yet further embodiment, a method, system and program product aredisclosed, the method comprising: accessing, by one or more computers,one or more electronic databases stored on one or more computer readablemedia comprising information on client funds held through a program ineach of a plurality of depository institutions participating in theprogram; and information for each of multiple government backed-insuredaggregated time deposit instruments holding a tranche of client funds;determining, by the one of more computers, a client availabledistribution amount, D_(i), comprising funds to be distributed tomultiple of the depository institutions in the program; determining, bythe one of more computers, a depository institution number tier, T_(i),for the client available distribution amount, D_(i), from among aplurality of tiers based on one or more criteria, wherein each tier hasa number, N_(T), of depository institutions electronically associatedtherewith or has associated with it a function for the tier forcomputing electronically the number, N_(T), of depository institutions;allocating, by the one of more computers, the client availabledistribution amount, D_(i), across a number of depository institutions,N_(T), equal to the number associated electronically with the tier,T_(i), or determined from a function associated with that tier, T_(i),so that a respective client portion, P_(i), of the client availabledistribution amount, D_(i), is allocated to each respective depositoryinstitution in the number of depository institutions, N_(T), in theclient's tier, T_(i); generating, by the one of more computers, data forinstructions to transfer funds for the purchase of financial instrumentsin N_(T) depository institutions, comprising purchase ofinterest-bearing aggregated time deposit instruments in multiple of thedepository institutions, based at least in part on the number ofdepository institutions, N_(T), for the client; and updating, by the oneof more computers, one or more of the electronic databases with updatedata for each of multiple of the clients, i.

The above and related objects, features and advantages of the presentinvention, will be more fully understood by reference to the followingdetailed description of the preferred, albeit illustrative, embodiments,of the present invention, when taken in conjunction with theaccompanying figures, wherein:

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a schematic block diagram of one embodiment.

FIG. 2 is a schematic block diagram of an electronic system forimplementing one or more of the embodiments.

FIG. 3 is a schematic block diagram of a further embodiment.

FIG. 4 is a schematic block diagram of a yet further embodiment.

FIG. 5 is a schematic block diagram of a yet further embodiment.

FIG. 6 is a schematic block diagram of an embodiment of a memoryconfiguration that may be used to implement the present invention.

DETAILED DESCRIPTION OF THE EMBODIMENTS

As noted, the field of the invention relates generally to administeringan allocation of funds for the purchase of time deposit instruments at aplurality of depository institutions and possibly other financialinstruments.

The term “depository institution” means any institution which isauthorized to accept deposits and issue certificates of deposit. Thiswould include state and national banks, state and federal savings banks,savings and loan associations, credit unions, and probably someindustrial loan companies, depending on current law. Most but notnecessarily all, would have government backed-insurance, such as FederalDeposit Insurance Corporation (FDIC) insurance, or the National CreditUnion Share Insurance Fund (NCUSIF) for credit unions, or stateinsurance.

Source institutions of funds to the system may be banks, credit unions,other types of depository institutions, registered investment advisors,broker dealers, asset managers, trust companies, retirement programs,other financial institutions or intermediaries, to name a few.Typically, the source institutions are the institutions that interactwith the clients that are placing or authorizing the respective clients'funds to go into and be managed by the system. Note that a sourceinstitution can be a clearing institution for one or more other sourceinstitutions or an intermediary for other source institutions. Theseterms will be discussed below.

One or more intermediary institutions may be used to facilitate themovement of funds between the source institution(s) and the depositoryinstitution(s) and/or to perform various recordkeeping functions. Suchintermediaries may perform record keeping and/or fund transferfunctions, and may include a bank or clearance bank through which fundtransfers may be facilitated, a clearing firm, an administrator thatperforms recordkeeping functions and/or provides data to facilitate fundtransfers, and/or other entities that perform fund transfer orrecordkeeping functions. Note that multiple entities may also fulfill asingle function or roll.

With respect to some types of source institutions, the sourceinstitution itself may clear its own client accounts or it may useanother entity to clear its client accounts. If a source institution isa clearing entity, it may provide clearing services to other sourceinstitutions, such as broker-dealers, banks, depository advisors, toname a few. Such entities for which clearing services are performed byanother entity are sometimes referred to as “correspondents.” Under someguidelines, when a clearing entity is used to clear funds for one ormore correspondents, the funds of the clearing entity and the one ormore correspondents may be held together in an aggregated account suchas an interest-bearing aggregated money market deposit account or anaggregated demand deposit account. In other embodiments, the funds fromeach different correspondent may be segregated in a separate aggregatedaccount.

In some deposit systems, one entity may play the role of one or more ofthe above. For example, a source institution, such as a bank, may alsobe a depository institution. Similarly, a source institution, like abroker-dealer, or a bank, may be affiliated with one or more of thedepository institutions.

Further, the administrator may also be either a source institution, adepository institution, a clearance bank, and/or another entityparticipating in deposit sweep functions. Likewise, a particular programmay have one source institution or many source institutions. Similarly,a particular program may have one depository institution or manydepository institutions.

The present invention may be used in the context of these or other fundmovement systems.

In the description to follow, the term “client account” refers to clientfunds, such as, for example, consisting of funds of the clientdesignated or determined for management by the deposit managementsystem, to be described.

FIG. 1 discloses an embodiment of the invention, comprising a managementsystem 100, which may be independent from or may comprise or beaffiliated with a source institution or a depository institution,managing a program to distribute client funds in tranches acrossdepository institutions to purchase time deposit instruments and otherfinancial instruments. The system 100 purchases or generates data forthe purchase of one or more time deposit instruments (which instrumentmay or may not own in its own name) in each of multiple of depositoryinstitutions 130-140. The system 100 may also generate data for apurchase of other financial products.

In one embodiment, the time deposit instruments are individual timedeposit instruments held for the respective client, i. In anotherembodiment, the client tranches from multiple different clients areaggregated to form a plurality of purchase amounts for purchase of timedeposit instruments in multiple of the depository institutions.

The amount of the client tranches for a respective client and/or thenumber of depository institutions used in the distribution is determinedin accordance with one or more of the algorithms disclosed herein. Inone embodiment, the funds for the purchase of the respective timedeposit instruments are aggregated in one or more accounts in one ormore intermediary banking institutions 110 to form amounts for thepurchase of aggregated time deposit instruments. The one or moreaccounts in the intermediary banking institution 110 in this embodimenthold funds to be allocated and distributed for purchase of the timedeposit instruments held in the depository institutions 130-140, and insome embodiments, one or more other financial products that are not timedeposit instruments.

In one embodiment, the intermediary banking institution 110 distributesclient funds, based on data from the system 100, to the depositoryinstitutions 130-140, to purchase time deposit instruments. In oneembodiment, these time deposit instruments are aggregated time depositinstruments holding the funds of a plurality of clients, such as “jumboCD's.” In one embodiment, one or more of these aggregated ornon-aggregated interest-bearing time deposit instruments are insured bythe Federal Deposit Insurance Corporation (FDIC) or the National CreditUnion Share Insurance Fund (NCUSIF) for credit unions, or anotherinsurance entity. In the case of large denomination CD's, the CD's maybe in the name of an agent or source institution or another entity ascustodian for customers, and pass-through insurance may be available.

In one embodiment, a fee for aggregating client funds for thesepurchases is determined based on one or more criteria. In oneembodiment, one of the criteria may comprise an amount to be deposited,or a cumulative amount deposited over a period of time by the clientand/or his/her family and/or friends, relative to a threshold ormultiple thresholds set forth in a tier table, or based on arelationship with a depository entity, or an amount invested by a givendepository entity with the system, or the type and/or parameters ofinstrument obtained (term, rate, institution, etc.), to name a few.Where an amount is used as a criterion, the amount may be compared tothresholds set forth in a fee tier table. The system may perform the feecalculation, or may receive a fee amount determined by a third party.Thus, other criteria besides an amount may be used.

Likewise, in one embodiment, whether an opportunity is to be offered tothe client to distribute funds in tranches across multiple programdepository institutions may be determined based on one or more criteria.For example, in one embodiment, one of the criteria may comprise anamount to be deposited, or a cumulative amount deposited over a periodof time by the client and/or his/her family and/or friends, relative toa threshold or multiple thresholds set forth in a tier table, or basedon a relationship with a depository entity, or based on an amountinvested by a given depository entity with the system, to name a few.Where an amount is used as a criterion, the amount may be compared tothresholds set forth in a tier table. As noted above, other criteriabesides an amount may be used, e.g., the type and/or parameters ofinstrument obtained (term, rate, institution, etc.).

FIG. 3 illustrates one embodiment of a system consistent with thepresent invention. The individual clients are represented in the figureby the small blocks i. The respective individual clients, i, maycomprise individual investors and/or institutional investors. One ormore source institutions, comprising broker dealers, and/or otherdepository entities, FE 1, FE 2, FE 3, and FE m, represented in block310, maintain a relationship with these clients, i. The managementsystem 100 and its one or more computers may be represented in FIG. 3 byblock 320. The management system computers 320 may be configured with aclient fund allocation computer program 321, and an accounting computerprogram 322 that maintains, in one or more databases, information on theclient funds and the depository institutions holding the aggregated ornon-aggregated time deposit instruments and other non-time depositfinancial instruments, and the movement of funds. In one embodiment,this accounting program 322 may provide individual client accountingfunctions, sweep functions, and sweep processing based on computerimplemented rules. The management system 320 may further comprise one ormore web application programs 323. The management system 320 may furthercomprise, in one embodiment, one or more computer programs 324 forprocessing and generating combined statements, including monthly, yearend and tax statements, programs for broker dealer or other depositoryentity administrative functions, programs for bank reconciliationprocessing, and programs for client inquiry processing. The managementsystem 320 may further comprise, in one embodiment, a modeling program325, for predicting a depository institution capacity for receivingfunds based on one or more criteria. Other computer programs run by themanagement system are referenced in FIG. 5, to be discussed below.

The time deposit instruments may be certificates of deposit, municipalbonds, corporate bonds, treasury bills, and the like, to name a few.Time deposit instruments typically have a specified term and yield rate(or coupon rate) indicating the rate of interest on the principalinvested. The rate of interest may be fixed, or may be a variable ratethat may change over time, based on one or more criteria. Time depositinstruments may include penalties and other terms and conditions thatmay affect their liquidity and value. Ownership interest in the timedeposit instruments may be prorated so that funds may be aggregated toobtain a large sum of money that can be deposited in one instrument,such as an aggregated certificate of deposit, at a banking institutionor other depository institution, and held in a depository serviceentity's name as agent and on behalf of others, such that FDIC insuranceor other applicable government-backed insurance may be available foreach individual beneficiary with funds in the instrument up to the FDIC(or other insurance) limit.

FIG. 3 further shows a one customer banking institution or intermediarybanking institution 110 that holds one or more control operatingaccounts. Also shown are a plurality of depository institutions 130,132, 134 . . . 140. In one embodiment, client available distributionamounts, D_(i), held in the relationship banking institutions orrelationship broker dealers or other relationship source institution 310for the respective client, are transferred into the one or more controloperating accounts maintained in the customer or intermediary bankinginstitution 110. The computers of the system 320 then allocates tranchesof the respective client available distribution amounts, D_(i), based ona percentage algorithm, a fixed amount algorithm, or a tier algorithm,or a combination thereof (to be discussed below), to a plurality of thedepository institutions 130-140, and generates and sends data forinstructions to have the funds transferred for the purchase of one ormore time deposit instruments, at each of multiple of the depositoryinstitutions. In one embodiment, other depository products may also bepurchased. The arrowed lines 340-349 represent the movement of funds toand from the various entities shown in the figure. The arrowed lines 350represent a transmission of information on the movement of the funds,including the amount transferred, the timing of the movement, and theinterest rate.

In one embodiment, the funds of a given client may be allocated topurchase individual time deposit instruments and in some embodiments,other individual financial instruments, for the respective client. Inanother embodiment, the transfer of funds into the control operatingaccount from the various source institutions may be aggregated intopurchase amounts and used to purchase aggregated time depositinstruments at multiple of the depository institutions. Such anaggregation may be accomplished in a variety of different manners, usinga variety of different transfer algorithms or methods. The transfers offunds into the program for the purchase of the time deposit instrumentsmay be ad hoc by the client or by the source institution that maintainsa relationship with the individual client. Alternatively, one or morecomputer-implemented rules may be used by the administrator, or a sourceinstitution that maintains a relationship with the individual client, orthe client itself, to implement an automatic sweep transfer fromrespective client for the purchase of time deposit instruments.

Referring again to FIG. 1, in one embodiment, the net transfer to orfrom one or more of the depository institutions 130-140 may be from oneor more control operating accounts 110 held in the source institutionhaving the client relationship, e.g., a depository entity that containsa bank. In another embodiment, the one or more control operatingaccounts for the transfer may be held in a bank controlled by orassociated in some manner with the administrator of the system 100. Inanother embodiment, the one or more control operating accounts may beheld in or on behalf of a deposit interchange entity that operates todistribute deposits across multiple depository institutions.

In one embodiment, one of the depository institutions 130-140 could bethe same depository institution that maintains a relationship with oneor more of the clients i. Alternatively, one or more of the depositoryinstitutions may be affiliated with the source institution maintainingthe relationship with the clients. Alternatively, none of the depositoryinstitutions may be affiliated with a depository institution or otherdepository entity that maintains the relationship with the clients.Alternatively, one or more of the depository institutions participatingin the program may be affiliated with the source institution maintainingthe relationship with the clients, and one or more of the depositoryinstitutions may be non-affiliated with respect to the sourceinstitution. Alternatively, none of the depository institutions may beaffiliated with the source institution maintaining the relationship withthe clients.

In one embodiment, in order to obtain liquidity for funds of clientsheld in time deposit instruments, an exchange may be implemented whereinnew funds received from other clients for investment in time depositinstruments may be used to offset all or a part of the amounts of one ormore clients requesting withdrawal of funds from these time depositinstruments. The attribution of ownership of the funds in these timedeposit instruments is then changed electronically in one or moredatabases to reflect this new ownership. The amount that can bewithdrawn by a given client may be limited to the amount of incomingfunds of other clients available for offset. Alternatively or inaddition, funds can be obtained from another source or account that isnot a time-deposit instrument, to accommodate the full withdrawalrequest. In one embodiment designed to accommodate liquidity, a certainamount of client funds may be placed in a non-time deposit depositoryproduct, such as for example, an aggregated money market deposit accountholding funds of multiple clients. The funds in this other depositoryproduct may be used to offset withdrawals without penalty.

In one embodiment, an amount or percentage of liquidity provided for agiven client may be determined based on one or more criteria, such asfor example, a total amount of client funds held in the system, astability of the client's funds held in the system determined over aperiod of time (e.g., an average or median held over the period of timein relation to one or more thresholds), an amount of a given clientavailable distribution amount, D_(i), relative to a threshold, a totalamount of funds held with a given depository entity by family and/orfriend accounts, a total amount held with the system by a given sourceinstitution, such as a broker dealer, a length of a client relationshipwith a given source institution, to name a few.

In an embodiment, the control operating account 110 is used to sendtranches, determined by the system computers 100, from an individualclient available distribution amounts, D_(i), to a plurality of thedepository institutions 130-140, to be aggregated in the respectivedepository institutions to form respective purchase amounts for thepurchase of aggregated time deposit instruments in the respectivedepository institutions. In another embodiment, the system computers areused to form tranches of the individual clients amounts, D_(i), and thento aggregate the tranches from a plurality of the clients, to form arespective purchase amount, for each of multiple of the depositoryinstitutions, for the purchase of at least one time deposit instrumentin each of a plurality of the respective depository institutions.Instructions are then generated to transfer or have transferred theserespective purchase amounts to the respective depository institutions tomake the purchase of the respective aggregated time deposit instruments.In one embodiment, the system computers, may actually perform thepurchase operations.

The control operating account 110 may be registered in the name of theagent or source institution for the exclusive benefits of its depositclients. The control operating account 110, in one embodiment, may, butneed not be, be zeroed, e.g., all or substantially all of the fundstherein transferred out at one or more specific times of the day, orperiodically, such as every hour, every few hours, every day, or everyfew days, or zeroed after the amount held therein reaches or exceeds athreshold amount. A database is updated to reflect these fundstransfers.

In one embodiment, for each program with each different sourceinstitution (e.g., broker dealer), a separate set of aggregated timedeposit instruments may be purchased by or for the administratorcomputers in a plurality of the depository institutions 130-140. Inanother embodiment, client funds from different programs of the samesource institution or different depository entities may be commingledand aggregated to form purchase amounts for the purchase of a pluralityof the aggregated time deposit instruments. Thus, in one embodiment,each broker dealer (an example of a source institution) can establish aseparate program with the administrator computers to allocate funds fromits respective clients into separate aggregated time depositinstruments, designated for that broker dealer, in multiple of thedepository institutions 13-140. In another embodiment, the funds fromclient accounts of a plurality of broker dealers can be aggregated intoa single set of aggregated time deposit instruments in multiple of thedepository institutions.

In some embodiments, the management system 100 may maintain some or allof the account information for each of the source institutions in one ormore databases within its own system. Alternatively, one or more thirdparties may maintain some or all of the account information in one ormore databases maintained. The management system 100 may report balancesand other data with respect to client funds (listed in the database as aclient account for the respective client), and amounts distributed intranches for the purchase of the aggregated time deposit instruments andpossibly other financial instruments, to the depository institutionsholding the instruments, and/or to an originating source institution,e.g., broker dealer, that maintains the client relationship, or to theclients themselves. May maintain some information, all information, orno information.

In one embodiment, a process is disclosed that operates electronicallyto assign fund amounts to the depository institutions based on variousrules, such as fitting within a maximum depository institution cap,and/or a minimum depository institution cap for a respective depositoryinstitution, and/or based on reciprocity issues to be discussed, or toobtain matching rates, or yields, or based on geographic regions, orterms of time deposit, and/or the availability of pass-throughinsurance.

The inventions relates to a plurality of embodiments for distributingtranches of client available distribution amounts, D_(i), for thepurchase of time deposit instruments and possibly other financialproducts in a plurality of depository institutions. In one embodiment,tranches of multiple clients are aggregated to form a purchase amountfor a time deposit instrument, i.e., an aggregated time depositinstrument. The parameters for the formation and the distribution ofclient tranches may be selected by the respective client, or by theadministrator, or automatically, based on one or more criteria. Examplesof the parameters for the tranches comprises the number of depositoryinstitutions to which to transfer the tranches, and/or a percentage orother amount determining algorithm to be applied to the client availabledistribution amount, D_(i), to determine the amount of the tranche.Other parameters for the distribution may comprise a term or rate oryield of the time deposit instruments and/or other financial instrumentsavailable from various depository institutions.

As noted, in one embodiment, a selection option for one or more of thetranche parameters is provided to the client. The tranche parameters maycomprise a number of depository institutions for the distribution of thetranches, and/or a percentage of the client available distributionamounts, D_(i), to be distributed in tranches to each of multiple of thedepository institutions for the purchase of time deposit instruments andother financial products, the client percentages, X_(i) and Y_(i) fordistribution, a term for the term deposit instrument, an interest ratefor the term deposit instrument, a selection of other financialinstruments, e.g., money market deposit accounts (MMDA's), demanddeposit account (DDA's), NOW accounts, mutual funds, a particular set ofdepository institutions, a particular set of depository institutions fortime deposit instruments and another set for different financialinstruments, from which to choose for some percentage of the client'sfunds. In one embodiment, the selection option is only provided to therespective client if one or more criteria are met. The one or morecriteria may comprise, an amount in a given client account, a compositeamount held in a plurality of different accounts associated with theclient, e.g., friends and/or family, for example, a number of the yearsthe client has maintained a given relationship with a sourceinstitution, to name a few. A selection option for tranche parametersmay be presented to the client electronically, for example, through anonline portal in an Internet banking client application, or via an emailcommunication, which, in one embodiment, may include a Web link. The Weblink, if clicked, opens an interface that allows the client to selectone or more parameters as described. The selection option for trancheparameters may also be presented to the client by mail or may beobtained by facsimile or by telephone or other means and keyed into thesystem.

After the client available distribution amount, D_(i), has beenobtained, then tranches thereof may be determined using an algorithm. Inone embodiment, the algorithm comprises calculating or having calculatedor otherwise determining a given percentage X_(i) of the clientavailable distribution amount, D_(i). In another embodiment, thealgorithm comprises using a set amount of the client availabledistribution amount, D_(i), for each tranche, which amount is less thanor more than the FDIC insurance limit, or other insurance limit, to eachof N_(i) depository institutions, where N_(i) is all or a subset of theN depository institutions in a given program. This subset of depositoryinstitutions for the distribution may be determined, in one embodiment,based on the available distribution amount, D_(i), and the allocationpercentage. If there is a remainder amount after this allocation oftranches to the N_(i) depository institutions, then an allocation may bemade of this remainder amount across each of one or more of M_(i)depository institutions (a subset of the depository institutions N),with the number of remainder depository institutions determined for thegiven client account, in one embodiment, based on the remainder amountfor the given client account. In a further embodiment, the number ofdepository institutions N_(i) for the distribution of tranches of theclient available distribution amount, D_(i), is based on tiers, selectedbased on one or more criteria, such as a balance in the client accountrepresenting client funds administered by the program, relative to oneor more thresholds, or a composite of funds held in accounts of theclient's family or friends, or an overall relationship with the client,or a broker-dealer or banking institution relationship, to name a few,relative to one or more threshold amounts. Other parameters used todetermine the number of depository institutions and to select particulardepository institutions for the distribution of tranches, may comprise aterm and rate and yield of the time instruments available from thevarious depository institutions, and the locations of the variousdepository institutions.

Note that although embodiments of the invention to be described hereinare designed to use tranches to purchase a plurality of time depositinstruments, as noted above, one or more of the tranches may also beused to purchase other financial products, such as money market depositaccounts, NOW accounts, money funds, securities, bonds, that may or maynot have government backed insurance. These other financial products maybe purchased with the individual tranches. Alternatively, the tranchesof multiple clients may be aggregated to form purchase amounts for thepurchase of such other aggregated financial products.

FIG. 4 discloses an embodiment, referred to as Option 1, comprising acomputer-implemented method, computer system configuration and programproduct, for managing funds of a plurality of respective clients toallocate a given percentage, X_(i), of client assets across a group ofdepository institutions for the purchase of time deposit instruments andpossibly other financial products, with the number of depositoryinstitutions, N_(i), for the distribution varying based on thepercentage X_(i), e.g., for an X_(i) of 20%, the number of depositoryinstitutions for the distribution would be 100%/20%=5. In oneembodiment, multiple of these purchased instruments may be aggregatedtime deposit instruments, where the purchase amount is formed byaggregating the tranches of multiple clients. Such an allocation oftranches for a respective client is illustrated in Table I below, asOption 1. The funds to be allocated may be received via one or moreinterfaces with clients and/or source institutions. For example, anelectronic interface may be set up to receive funds directly fromclients, and/or from broker dealers or other source institutions, and/orfrom Internet depository institutions, to name a few.

TABLE I Amount for Distribution 100,000 100,000 1,000,000 Option 1,Option 1, Option 1, Bank Scenario 1 Scenario 2 Scenario 3 1 $20,000$18,000 $180,000 2 $20,000 $18,000 $180,000 3 $20,000 $18,000 $180,000 4$20,000 $18,000 $180,000 5 $20,000 $18,000 $180,000 6     0 $10,000$100,000 7     0     0 8     0     0     0 9     0     0     0 10      0    0     0 Total $100,000  $100,000  $1,000,000  

In the embodiment of FIG. 4, one or more computers may be configured,for example with computer program code loaded in main memory, or viahard-wiring, to implement the allocation. The one or more computers maybe configured, in one embodiment, to provide that the tranche amountscalculated will not exceed a predetermined value based on an accounttype insurance limit. In another embodiment, the tranche amounts may bedetermined, at least in part, so as not to cause a depository cap forthe depository institution to be exceeded. Such a depository cap may bedetermined, for example, based at least in part, on collateral held bythe depository institution or other safety measure or criteria for thedepository institution. The tranche amount allocated may besubstantially the same across all of the depository institutions, or maybe varied, in some embodiments, based on computer-implemented rulesapplied for the allocation. Note that different computer-implementedrules may be applied depending on whether the client is a regularindividual, a high net worth individual, a corporation, a partnership,or other entity type, or a client account balance, or based on othervariables in a program.

In more detail, FIG. 4 discloses a computer-implemented operation 400 ofaccessing, by one or more computers, one or more electronic databases,stored on one or more computer-readable media. In one embodiment, theone or more electronic databases comprise: client information for eachof a plurality of respective clients, i, comprising information onclient funds held through a program in each of a plurality of depositoryinstitutions participating in the program, with information for arespective client comprising one or more of the following items: (i) abalance of funds of the client held through the program in each ofmultiple of the depository institutions holding funds of the respectiveclient; (ii) a distribution percent value, X_(i), of a given clientdeposit amount, to be distributed in tranches to each of N_(i)depository institutions. Additionally, the one or more databases maycomprise one or more items of information for each of multiplegovernment backed-insured aggregated time deposit instruments holding atranche of client funds, comprising: (i) a rate for the respectiveaggregated time deposit instrument; (ii) an identification of thedepository institution holding the respective aggregated time depositinstrument; (iii) a term of the respective aggregated time depositinstrument holding funds of the respective client. In a furtherembodiment, the database may further comprise an interest rate promisedto the respective client by the source institution. Information on otherfinancial products holding client funds through the program may also becomprised in the one or more databases.

Note that the percentage, X_(i), for a given client, i, may bedetermined based on one or more criteria, such as a total balance of therespective client i with a source institution, or a total balance of arespective client, or a client and friends and/or family with the sourceinstitution, relative to one or more thresholds, or relative to a set ofthresholds in a tier table, or a number of years the respective clienthas maintained a relationship with the source institution or theprogram, and/or the term and rate and yield of the time depositinstruments available at that time, and the type of client entity(individual, or municipal entity, or corporate entity) making thedeposit, to name a few. Alternatively, this percentage may be obtainedfrom the client, or from the source institution.

The following steps 410, 420, 430 and 440 are then performed for eachclient, i, of a plurality of clients:

Block 410 comprises an operation of determining, by the one or morecomputers, a given client available distribution amount, D_(i), for arespective client, i, comprising funds to be distributed in tranchesover N_(i) respective depository institutions for the respective client,for the purchase of aggregated or non-aggregated time depositinstruments and potentially one or more other financial products.

Block 420 comprises a computer-implemented operation of determining, bythe one or more computers, an amount of a client tranche, by the one ormore computers, based at least in part on the percentage, X_(i), and therespective client available distribution amount, D_(i). This determiningoperation may be performed for example by accessing a database, or awebsite, or by calculating or having calculated the amount of the clienttranche. In one embodiment, the amount of the tranche is restricted toless than an insurance amount. In one embodiment, an algorithm used forthe calculation of the tranches comprises simply multiplying the clientavailable distribution amount, D_(i), by the percentage X_(i). Inanother embodiment, the calculation is based on the rate listed for (andpromised to) the given client available distribution amount, D_(i), ofthe respective client, and the rate for the respective aggregated ornon-aggregated time deposit instrument to be provided by the respectivedepository institution offering the respective aggregated ornon-aggregated time deposit instrument, and an algorithm to determine anamount of funds necessary for the client depository institution trancheto realize the rate listed for the given client available distributionamount, D_(i), to obtain a return from that tranche from the respectiveaggregated or non-aggregated time deposit instrument, so that the ratepromised to the client for the client available distribution amount,D_(i), is achieved. For example, a source institution with arelationship with a respective client may be promising to pay 3% to theclient for the client available distribution amount, D_(i). However, theaggregated or non-aggregated certificate of deposit to be purchased froma particular depository institution may be paying 4%. The sourceinstitution, or the system 100, in one implementation may put in lessmoney in a tranche for a given depository institution, i.e., a lowertranche amount than an amount determined by a simple division of theclient available distribution amount, D_(i), by the number of depositoryinstitutions in which time deposit instruments are to be purchased wouldindicate, to obtain the return of 3% promised to the client, in view ofthe actual 4% rate paid by this depository institution. Alternatively,it may be necessary to put in more money in the tranche for a givendepository institution than a simple division of the given clientavailable distribution amount, D_(i), by number of depositoryinstitutions in which time deposit instruments are to be purchased wouldindicate, if the source bank promised to pay 3% to the client, but theaggregated or non-aggregated certificate of deposit to be purchased fromthe particular depository institution is only paying 2%.

Block 430 comprises a computer-implemented operation of determining, bythe one or more computers, for a given tranche distribution percentage,X_(i), to be distributed for the purchase of time deposit instruments,for a client available distribution amount D_(i), a value of N_(i)depository institutions for the respective client, wherein N_(i) is awhole number and (X) times (N_(i)) is equal to or less than 100, e.g.,if X_(i), is 18%, then 100%/18%=N_(i)=5, plus a remainder.Alternatively, the number of depository institutions N_(i) is a wholenumber which is equal to 100%/X_(i), where X_(i) is a distributionpercent value to be distributed to each of the N_(i) depositoryinstitutions for the respective client account, e.g., if X_(i), is 20%,then 100%/20%=N_(i)=5, with no remainder amount in this example. Notethat in one embodiment, the operation may be subject to one or morecriteria, such as that the respective client available distributionamount, D_(i), to be distributed in tranches, equals or exceeds athreshold value, and/or that the operation is permitted only if a logicelement is set, based on a particular relationship between thedepository entity and the client, to name a few. For example, in oneembodiment, this step may only be performed on client availabledistribution amounts D_(i) that are above or below a threshold amount,e.g., less than an FDIC-insured limit or other insurance limit orcollateral limit, multiplied by the determined N_(i) depositoryinstitutions.

Block 440 comprises a computer-implemented operation of allocating, bythe one or more computers, respective client depository institutiontranches, for purchase of one or more aggregated or non-aggregated timedeposit instruments in each of the respective N_(i) depositoryinstitutions determined for the client. In one embodiment, therespective depository institution would then aggregate the clientdepository institution tranches from a plurality of the clients to forma purchase amount to purchase an aggregated time deposit instrument.Note that the purchase amounts may vary from depository institution todepository institution based on one or more criteria such as, forexample, a depository institution maximum or minimum cap, or a stabilityrating.

In one embodiment, this allocating step may further comprise determiningclient eligibility for having a given client available distributionamount, D_(i), distributed in tranches among N_(i) depositoryinstitutions, based on one or more criteria; and aggregating, by the oneor more computers, respective client depository institution tranches ofa plurality of respective clients that are determined to be eligible,into a respective purchase amount to purchase the aggregated ornon-aggregated time deposit instrument from a respective depositoryinstitution. Note that client amounts that are not eligible to bedistributed to multiple depository institutions because they do not meetone or more criteria may be also included in some embodiments in theaggregation for one or more depository institutions to form a purchaseamount. In one embodiment one criteria for client eligibility may be anamount of the given client available distribution amount, D_(i),relative to a threshold amount. In another embodiment, one criterion forclient eligibility may be a total amount of the funds of the respectiveclient managed in the program relative to a threshold amount. In anotherembodiment, one criterion may be a relationship of the client or anamount invested with a source institution. Note that the determiningeligibility step may be performed by accessing a database or a website,or by making a comparison of a client available distribution amount,D_(i), or a client total amount managed in the program to a thresholdamount, or by keying in the eligibility data.

Block 450 comprises a computer-implemented operation of generating dataand/or instructions, by the one or more computers, to transfer therespective client depository institution tranches and to purchase aplurality of aggregated or non-aggregated time deposit instruments atthe respective N_(i) depository institutions determined for the client.In one embodiment as noted above, the client depository institutiontranches are to be transferred individually to the respective depositoryinstitutions to be accumulated by the respective depository institutionfor the purchase of aggregated time deposit instruments. In anotherembodiment, multiple of the client tranches designated for a particulardepository institution, are aggregated by the system into a purchaseamount for an aggregated time deposit instrument, and data and/orinstructions are generated to send the respective purchase amount to therespective depository institution to purchase the aggregated timedeposit instrument with purchase amount, or to be used for a furtheraggregation with other tranches, to form a purchase amount for anaggregated time deposit instrument. The instructions may contain anexplicit or an implicit purchase request for the time depositinstruments.

Block 460 comprises a computer-implemented operation of updating, by theone or more computers, one or more of the electronic databases withupdate data for multiple of the clients, i, with the update data foreach of these multiple clients, i, comprising respective clientdepository institution tranches transferred or to be transferred topurchase one or more aggregated or non-aggregated time depositinstruments at the respective client Ni depository institutions for theclient, i.

In one embodiment, the operation is performed of selecting respectiveclient depository institution tranches of a plurality of respectiveclients for aggregation into a respective purchase amount for anaggregated time deposit instrument from a particular depositoryinstitution, based, at least in part, on at least one criterion. In oneembodiment, the at least one criterion is that only tranches from clientavailable distribution amounts, D_(i), above a threshold amount areaggregated into a respective purchase amount for purchase of anaggregated time deposit instrument from a particular respectivedepository institution or at a particular rate. In another embodiment,the at least one criterion is that only tranches from client availabledistribution amounts, D_(i), below a threshold amount are aggregatedinto a respective purchase amount for purchase of an aggregated timedeposit instrument from the respective depository institution. In yetanother embodiment, the at least one criterion is that only tranchesfrom client available distribution amounts, D_(i), associated in the oneor more databases, with a particular source institution are aggregatedinto a respective purchase amount for purchase of an aggregated timedeposit instrument from a particular depository institution and/or at aparticular rate. In another embodiment, the at least one criterion isthat the term for the client available distribution amount, D_(i), is apredetermined term. Various other criteria, e.g., total funds of theclient, or the client and family and/or friends, with the sourceinstitution, or managed by the system 100, may be used to selecttranches to form purchase amounts for aggregated time depositinstruments at a particular depository institution or at a particularrate and/or particular term.

In a further embodiment, the operation is performed of purchasing theaggregated time deposit instrument. In one embodiment, this purchasingstep is performed electronically by the transmission of an electronicmessage by the one or more computers and via one or more electronicnetworks.

In a further embodiment, the system 100 determines a group of depositoryinstitutions to participate in a reciprocal program for distributingtranches for the purchase of aggregated time deposit instruments. By wayof example, factors that may be taken into account in making adistribution of tranches comprise the fact and/or amount originatingfrom a respective source institution, and any relationship of the sourceinstitution to the recipient institution, either a contractualrelationship or a corporate affiliation, to name a few. In this furtherembodiment, the one or more databases may further comprise informationon source institution activity of a respective depository institution,e.g., the funds brought into the system 100 for distribution to otherdepository institutions participating in the program. This sourcingactivity would be considered in selecting which depository institutionsare to receive tranches for the purchase of time deposit instruments andother financial instruments. In this embodiment, the steps may beperformed of receiving an order from a respective source institution, todistribute one or more client available distribution amounts, D_(i), offunds of clients of the source institution, for the purchase of aplurality of aggregated or non-aggregated time deposit instruments. Inone embodiment, the order comprises one or more electronic documents andis received electronically by the one or more computers and via the oneor more electronic networks. The allocating step in this embodimentfurther comprises: selecting, by the one or more computers, one of thedepository institutions participating in the program, for purchase ofone or more aggregated time deposit instruments based, at least in part,on whether or not one or more orders have been received from therespective one depository institution under consideration, to distributeone or more client available distribution amounts, D_(i), of clients ofthat respective one depository institution for the purchase of aplurality of aggregated or non-aggregated financial instruments in otherdepository institutions participating in the program. As noted, aregion, or contractual relationship of a corporate affiliation may alsobe taken into account.

In one implementation of this embodiment, the selection of the onedepository institution participating in the program for the purchase ofone or more aggregated time deposit instruments is based, at least inpart, on whether the one or more orders received in the system 100 fromthe respective one depository institution, for distributing tranchesfrom client available distribution amounts, D_(i), of clients of therespective one depository institution to other program depositoryinstitutions, meets at least one criterion. The at least one criterionmay be that a cumulative amount of the client available distributionamounts, D_(i), from the one depository institution, that weredistributed to other program depository institutions, is more than therespective one depository institution has received in client depositoryinstitution tranches associated with other program source institutions.Alternatively, one criterion may be that the cumulative amount of theclient available distribution amounts, D_(i), from the one depositoryinstitution, that were distributed to other program depositoryinstitutions equals or exceeds a threshold level. Money received can betaken into account, e.g., see the reference to reciprocity, above.

In a further embodiment, the steps are performed of selecting, by theone or more computers, one of the depository institutions for thepurchase of one or more aggregated or non-aggregated time depositinstruments based, at least in part, on how close a rate and term of theaggregated or non-aggregated time deposit instrument available from therespective one depository institution matches a rate promised by thesource institution for the given client available distribution amount,D_(i), of funds of the respective client.

In a further embodiment, the step is performed of selecting, by the oneor more computers, a respective one of the depository institutions forthe purchase of one or more aggregated or non-aggregated time depositinstruments based, at least in part, on a safety grade rating for therespective one depository institution.

In a further embodiment, the step is performed of selecting, by the oneor more computers, respective one or more of the depository institutionsfor the purchase of one or more aggregated or non-aggregated timedeposit instruments based, at least in part, on whether the respectivedepository institution is affiliated with the source institution for oneor more of the client available distribution amounts, D_(i), to be usedfor the purchase. In this embodiment, the one or more databases comprisedata on the source institution for each of a plurality of the clientavailable distribution amounts, D_(i).

In a yet further embodiment, the one or more databases comprise a listof depository institutions for holding tranches of the client availabledistribution amount, D_(i), of a respective client, and/or a list of oneor more depository institutions that are not to hold the clients' funds.In one embodiment, this list may be provided by the respective client orsource institution for the respective client.

Table I, Scenario 1, discloses an example allocation for this embodimentwhere X equals 20% of D_(i), for the purchase of one or more timedeposit instruments in each of N_(i) depository institutions, whereN_(i) is determined to be 100%/20%=5 depository institutions in theprogram, in the example. Note that the total number of depositoryinstitutions participating in the program in this example is 10.

In a variation to this embodiment, referred to as Scenario 2 of Option1, a computer-implemented method is disclosed for allocating respectiveclient tranches comprising a percentage, X_(i), of the client availabledistribution amount, D_(i), of $100,000 for the purchase of time depositinstruments, where there is a remainder, e.g., X_(i)=18%, resulting in18% being distributed across 5 depository institutions in a program with10 depository institutions. A remainder percentage, R_(i), e.g., 10%, isthen allocated across one or more remainder depository institutions,e.g., in a 6^(th) depository institution in Table I, Scenario 2. In thisexample, the funds for the remainder depository institution (e.g., the6^(th) depository institution) may be placed in another depositoryinstrument in a different financial instrument that does not havepenalties for withdrawal, e.g., a money market deposit account (MMDA).Funds from this MMDA in the 6^(th) depository institution may be used tosettle service transactions, such as debits, deposits, and transfers.This design, illustrated in Table I, as Option 1, Scenario 2, may alsobe used to minimize activity in the first group of depositoryinstitutions, e.g., depository institutions 1 through 5 in this example,and yet facilitate liquidity with the funds in the 6^(th) depositoryinstitution through this method.

One embodiment of this second scenario comprises, allocating at least aportion, PR_(i), of a remainder amount, R_(i), by the one or morecomputers, of the respective client available distribution amount,D_(i), where R_(i)=(D_(i))−(D_(i)(N_(i)·X_(i))/100), and N_(i) is awhole number equal to 100%/X_(i), to one or more of the depositoryinstitutions, M_(i), up to a predetermined amount in each of therespective client M_(i) depository institutions, where M_(i), is one ormore depository institutions. For the example shown in Table I, thisequation would mean that R_(i), would be equal to the amount (D_(i)) of$100,000 minus the quantity of $100,000 times the number of depositoryinstitutions N_(i), which is a whole number of 5 in this case, e.g.,100%/18%, in which client account deposits are allocated, times thepercentage of 18%, divided by 100, which results in $100,000−$100,000(5×18)/100=$10,000. Thus, the remainder amount R_(i), is $10,000distributed to M_(i) bank 6.

A Scenario 3 is also shown in Table I, and represents the situation foran individual with a large account balance, e.g., $1,180,000, in his/herrespective client account. In this situation, a percentage, X, e.g., 18%in the example, is allocated across the 5 depository institutions; 18%of $1,000,000 is $180,000. A remaining balance, R_(i), of $100,000, isallocated to a 6^(th) depository institution.

It is within the letter and spirit of the present invention that thenumber of depository institutions and percentages to be allocated may bevaried.

In another embodiment of the invention, referred to as Option 2 andshown in Table II, a system, program product, and computer-implementedmethod are disclosed to approximately evenly allocate tranches for aclient available distribution amount, D_(i), across a fixed number ofdepository institutions, N_(i), by taking the respective client's clientavailable distribution amounts, D_(i) and dividing, via the one or morecomputers, by the fixed number of depository institutions, N_(i). Inthis embodiment, one or more computers may be configured, for examplewith computer program code loaded in main memory, or via hard-wiring, toimplement the allocation. The one or more computers may be configured,in one embodiment, to provide that the amount allocated to a depositoryinstitution will not exceed the account type insurance limit (currently$250,000) and/or will not override a depository institutioncapacity—with an exception being an allocation to one or more safetydepository institutions. Option 2, Scenario 1, is illustrated in TableII, for a client's account balance of $100,000, which is to bedistributed approximately evenly across 10 depository institutions in aprogram, e.g., $100,000/10 (number of depository institutions)=$10,000per depository institution.

TABLE II Amount for Distribution 100,000 2,320,000 Option 2, Option 2,Bank Scenario 1 Scenario 2 1 $10,000 $700,000 2 $10,000 $180,000 3$10,000 $180,000 4 $10,000 $180,000 5 $10,000 $180,000 6 $10,000$180,000 7 $10,000 $180,000 8 $10,000 $180,000 9 $10,000 $180,000 10 $10,000 $180,000 Total $100,000  $2,320,000  

In a Scenario 2 for this Option 2, shown in Table II, a client has atransaction balance of $2,320,000, a balance of $180,000 is allocated toeach of depository institution 2-10. A remaining balance is allocatedand sent to a safety depository institution 1, in a money fund or one ormore other financial instrument instruments that may or may not be FDICinsured or have other insurance.

In another embodiment, N_(i) may vary for each client account, i, basedon one or more criteria, such as for example, a total amount a client,or the client and family and/or friends have on deposit in variousaccounts with a given source institution, or a total amount a client, orthe client and family and/or friends have on deposit in the program, anumber of available depository institutions with capacity, theparameters of the respective program, to name a few.

A yet further embodiment of a computer-implemented method comprisesOption 3 shown in Table III. For Option 3, the one or more computers maybe configured to calculate a percent of client assets, and allocatetranches of that percent amount across a first N_(i) depositoryinstitutions in program. The remaining amount of client assets is thenallocated in tranches across M_(i) program depository institutions.Thus, a first percentage, X_(i), a number of depository institutions,N_(i), across which to distribute the first percentage, and a number ofdepository institutions, M_(i), across which to distribute a secondpercentage, Y_(i), may be specified by or for the respective client. Inone embodiment, the amount allocated to each depository institution inone of the sets of depository institutions is determined to not exceedthe account type insurance limit (currently $250,000) or not to cause adepository institution to exceed its capacity—with an exception being anallocation to one or more safety depository institutions.

Table III illustrates a Scenario 1 for this Option 3. In this Scenario1, for a client with a total account balance of $500,000, an X_(i) of80% is allocated in tranches across an N_(i) of the first two depositoryinstitutions, e.g., $200,000 in each of N_(i) depository institutions 1and 2, for the purchase of time deposit instruments. An Y_(i) comprisingthe remaining 20% of the balance is allocated in tranches across theremaining M_(i) depository institutions 3-10, e.g., $12,500 to each ofdepository institutions 3-10. The tranches allocated to depositoryinstitutions 3-10 may be used to purchase time deposit instruments, orother financial instruments, such as MMDA's, to facilitate liquidity.

A Scenario 2 for Option 3 is shown in the second column in Table III. Inthis Scenario 2, for a client with a total account balance of $499,997,an X_(i) of approximately 50% is allocated in tranches among an N_(i) ofthe first three depository institutions 1-3, e.g., $83,333 in each ofdepository institutions 1-3, for the purchase of time depositinstruments. The remaining Y_(i) of approximately 50% is allocated intranches across the remaining M_(i) depository institutions 4-10, e.g.,$35,714 to each of depository institutions 4-10, and may be used topurchase time deposit instruments, or other financial instruments, suchas MMDA's, to facilitate liquidity.

Although convenient for purposes of illustration, note that the amountsallocated in tranches to the depository institutions in a given set ofdepository institutions, e.g., N_(i), need not be equal. Also, note thatthe amount of the tranche in a given depository institution for a clientmay exceed the FDIC insurance limit. This is illustrated in a Scenario 3shown in column 3. Column 3 shows the same percentage of 50% allocatedin tranches to the first set of depository institutions, 1 and 2, as incolumn 1, but the amount in depository institution 1 is different fromthe amount in depository institution 2, and the total amount of theclient available distribution amount, D_(i), causes the balance for theclient in multiple of the depository institutions to exceed the FDIClimit.

In one embodiment, one or more of the tranches may be invested instocks, or bonds, municipal or ETF funds, or ETN's or other notes, orother financial instruments, via a broker or other financialintermediary, in the infrastructure of the banking entity or associatedwith the banking entity.

TABLE III Amount for Deposit $500,000 $499,997 $5,200,000 $1,800,000Depository Option 3, Option 3, Option 3 Option 3 Instr. Scenario 1Scenario 2 Scenario 3 Scenario 4 1 $200,000  $83,333 $1,500,000  $500,000 2 $200,000  $83,333 $1,100,000   $500,000 3 $12,500 $83,333$325,000 $200,000 4 $12,500 $35,714 $325,000 $200,000 5 $12,500 $35,714$325,000 $100,000 6 $12,500 $35,714 $325,000 $100,000 7 $12,500 $35,714$325,000  $50,000 8 $12,500 $35,714 $325,000  $50,000 9 $12,500 $35,714$325,000  $50,000 10  $12,500 $35,714 $325,000  $50,000 Total $500,000 $499,997  $5,200,000   $1,800,000  

For the embodiments illustrated in column 1 of Table III, where theamount of a client's funds held in each depository institution in afirst set of depository institutions, N_(i) of 2 is made to be equal,the percentage X_(i), of 80% is deposited across the depositoryinstitutions 1 and 2, e.g., 40% in each of the institutions 1 and 2.Then the amount that is remaining, in this example comprising $100,000,is distributed across a second set, M_(i), of 8 depository institutions.In one embodiment, a client second percentage, Y_(i), to be distributedin tranches across the depository institutions in this second set, e.g.,the remaining 20% in this example, is divided by the number ofdepository institutions in the second set, e.g., 8, so that 20%/8=2.5%per tranche. This tranche percentage is then multiplied by the clientavailable distribution amount, D_(i), and distributed as a tranche toeach of the depository institutions in this second set of depositoryinstitutions, e.g., $12,500 for the example of column 1. In oneembodiment, the second percentage Y_(i) equation is(100%−X_(i))/(M_(i)). In the example illustrated in Table III, Option 3,Scenario 1, where X_(i)=80%, the calculation for the second percentageis Y=(100−80)/8=2.5%.

In a further embodiment, referred to as Scenario 4, and shown in column4 of Table III, three sets of depository institutions are used, with adifferent percentage allocated across each set. Within the given set,the percentage allocated may be distributed equally across each of thedepository institutions in the set. Alternatively, the tranche amountsin the depository institutions in the given set may be different anddetermined by one or more criteria. The depository products purchasedmay vary from set to set. For example, time deposit instruments may bepurchased in depository institutions in the first set of depositoryinstitutions, e.g., depository institutions 1 and 2. Also, one of thesets of depository institutions may be determined based on one or morecriteria, relating to client characteristics, such as a total balance ofthe client with a source institution or managed in the program, or anyof the other criteria already set forth herein, or based on one or morecriteria related to the depository institution or source institution,such as the capacity of the depository institution, the balance sheetand safety of the depository institution, to name a few. In the exampleshown in column 4, the first set comprises depository institutions 1 and2, and has allocated to the set a percentage of 50% to be split up intranches for the respective depository institutions in the first set.The second set of depository institutions may be determined based on oneor more criteria, and comprises in this example, depository institutions3, 4, 5 and 6, and has allocated thereto a percentage Y_(i) of 30% to besplit up in tranches for the respective depository institutions in thesecond set. A different set of financial products may be purchased inthis second set or time deposit instruments with differentcharacteristics relative to the first set of depository institutions maybe purchased, e.g., time deposit instruments with a shorter termcompared to the term of the time deposit instruments purchased in thefirst set of depository institutions. The third set may comprise adifferent set of financial instruments, such as MMDA's or a set ofequity funds, which may be determined based on one or more criteria. Inan example with equity funds, the institutions 7, 8, 9 and 10 in thethird set may comprise equity fund institutions, and may have allocatedthereto a percentage Z_(i) of 20% to be split up in tranches for therespective third set. As noted, a choice of financial products may beused to facilitate liquidity.

A yet further embodiment of the invention comprises allocating clientfunds across a number of depository institutions, with the number ofdepository institutions for the allocation determined based on one ormore criteria, e.g., a tiering of the number of depository institutionsfor deposit based on the one or more criteria. For example, onecriterion may comprise a balance of client funds managed by the system100 in the program relative to a tiering table, with the tiering tablecomprising for each tier, a number, N, of depository institutionsassigned to the respective range of balances. Another criterion may bethe balance in all of the accounts for a client, or a client and theclient's family and/or friends, managed by the system 100 (the program),or listed in accounts of a respective associated source institution,relative to tier ranges in a tiering table. Another criterion may be anoverall client relationship with the system 100 (the program) or withone or more depository institutions participating in the program.Another criterion may be an overall amount of funds currently managed bythe system 100 for a given associated source institution, e.g., a brokerdealer or source depository institution.

Referring to FIG. 5, one embodiment for tiering, a computer-implementedoperation of this embodiment may comprise performing, by the one of morecomputers, the following steps for each client, i, of multiple of theclients (note that this tiering option may be offered to only selectedclients based on one or more criteria)

In block 500 in FIG. 5, an operation is represented of accessing one ormore electronic databases comprising information on client funds heldthrough a program in each of a plurality of depository institutionsparticipating in the program; and information for each of multiplegovernment backed-insured aggregated time deposit instruments and otherfinancial instruments holding a tranche of client funds. Note that inone embodiment, one or more databases may comprise a balance of clientfunds managed by the system in a program and held in accounts inmultiple of the depository institutions. In other embodiments,information in the one or more databases may comprise clientrelationship data and/or client tier levels, N_(T). Additionally, theone or more databases may comprise one or more items of information foreach of multiple government backed-insured aggregated time depositinstruments holding a tranche of client funds, comprising: (i) a ratefor the respective aggregated time deposit instrument; (ii) anidentification of the depository institution holding the respectiveaggregated time deposit instrument; (iii) a term of the respectiveaggregated time deposit instrument holding funds of the respectiveclient. Information on other financial products holding client fundsthrough the program may also be comprised in the one or more databases.

In block 510 in FIG. 5, a computer-implemented operation is representedof determining, by the one of more computers, a client availabledistribution amount, D_(i), comprising funds to be distributed tomultiple of the depository institutions in the program. Thisdetermination may be subject to one or more computer implemented rules,as discussed previously. The determining operation may be performed in avariety of different ways, such as by accessing a database or a Website,or calculating the data, or by having the data keyed into the system.

In block 520 in FIG. 5, a computer-implemented operation is representedof determining, by the one of more computers, a depository institutionnumber tier, T_(i), for the client available distribution amount, D_(i),from among a plurality of tiers based on one or more criteria, whereineach tier has a number, N_(T), of depository institutions electronicallyassociated therewith or has associated with it a function for the tierfor computing electronically the number, N_(T), of depositoryinstitutions. In one embodiment, one of the criteria may comprise inwhich tier range the client available distribution amount D_(i), or atotal amount of client funds managed by the system 100 in the program,or a total amount from the associated source institution managed by thesystem 100 in the program, fits in a tier table comprising a set ofdeposit amount ranges, with a prescribed number of depositoryinstitutions, N_(T), assigned to each respective tier range. Any of theother example criteria set forth herein may be used. As noted, thedetermining operation may be performed in a variety of different ways,such as by accessing a database or a Website, or calculating the data,or by having the data keyed into the system.

In block 530, a computer-implemented operation is represented ofallocating, by the one of more computers, the client availabledistribution amount, D_(i), across a number of depository institutions,N_(T), equal to the number associated electronically with the tier,T_(i), or determined from a function associated with that tier, T_(i),so that a respective client portion, P_(i), of the client availabledistribution amount, D_(i), is allocated to each respective depositoryinstitution in the number of depository institutions, N_(T), in theclient's tier, T_(i). In one embodiment of this Option, the clientportions, P_(i), allocated to each of the respective depositoryinstitutions, N_(T), in the client's tier, T_(i), are approximatelyequal, but do not exceed a predetermined amount, except for one or moresafety depository institutions. In another embodiment, the clientportions or tranches, P_(i), may vary from depository institution todepository institution based on one or more criteria set forth by theclient, or the source institution, or the system, or based on suchcriteria as a minimum cap and a maximum cap set for the respectivedepository institution. In these other embodiments, the client portions,P_(i), may be determined in accordance with one or more of thecomputer-implemented methods. Note that a selection of depositoryinstitutions may be made by the client or by the source institution, orby the system 100 based on one or more criteria as previously described.

In one embodiment, the computer-implemented operation is performed ofaggregating tranches from different clients of the same sourceinstitution, or from different source institutions, and calculating, bythe one of more computers, for each respective depository institution ofmultiple of the depository institutions in the program, a respectivepurchase amount for allocation for purchase of one or more of theinterest-bearing aggregated time deposit instruments to be held in therespective depository institution. The respective purchase amountcomprises a sum of a plurality of respective clients' tranches, P_(i),allocated to the respective depository institution for the purchase ofthe aggregated time deposit instrument. As noted, in some embodiments,client amounts that are not eligible to be distributed across multiplebanks may also be included to form respective purchase amounts.

In block 540, a computer-implemented operation is represented ofgenerating, by the one of more computers, data for instructions totransfer funds for the purchase of financial instruments in N_(T)depository institutions, comprising purchase of one or more of theinterest-bearing aggregated time deposit instruments in the respectivedepository institutions in the program. As noted above, other financialinstruments may be purchased in one or more of these depositoryinstitutions. As noted previously, in some embodiments, the purchasedata may be not comprise aggregations of tranches, but may be for apurchase of time deposit instruments and other financial instruments forindividual clients.

In block 550, a computer-implemented operation is represented ofupdating, by the one of more computers, one or more of the electronicdatabases with update data for each of multiple of the clients, i, withthe update data for each of the multiple clients comprising data for therespective client tranche, P_(i), allocated to purchase one or more ofthe interest-bearing aggregated or non-aggregated time depositinstruments or other financial products in each respective depositoryinstitution in the number of depository institution, N_(T), determinedfor the client based on the tier determined for that client. Note thatin some instances, the client tranche, P_(i), for the respectivedepository institution may be in excess of the FDIC insurance limit ormay raise the total amount of client funds held in that depositoryinstitution to above the FDIC insurance limit, particularly if therespective depository institution is a safety depository institution forthe respective client.

In a yet further embodiment, after the system has determined that aclient, or a broker dealer, or financial intermediary, or sourceinstitution, has met one or more designated criteria, then the client,or broker dealer or source institution may be permitted to designate anumber of depository institutions across which to deposit its clientavailable distribution amount, D_(i), and/or to designate a percentageto be deposited in each of these designated depository institutions.

Note that all of the embodiments disclosed herein may be implementedwith the added operation of administering the client deposits/transfersto and/or withdrawals/transfers from respective client accounts in amonth. In one implementation of this embodiment, data for a sequence ofwithdrawals/transfers or a manner of making withdrawals/transfers isgenerated so that more than six (6) withdrawals/transfers may be made inthe month from one depository institution. In one embodiment, the systemposts the deposits/transfers and withdrawals/transfers, or nets thereof,and sweep data against client accounts representing funds of therespective client managed by the system in the program, in the one ormore databases. This added operation may comprise the back-end volumeprocessing of large numbers of withdrawals in a month by check, debitcard, credit card and/or ACH.

As noted, in variations of the previously described embodiments, one ormore of the aggregated interest-bearing accounts held in the depositoryinstitutions may or may not be FDIC insured, and the respectivedepository institution may alternatively, hold an amount of collateralor exhibit other features to justify a determination that the respectivedepository institution is safe.

In a further variation that can be applied to modify each of theembodiments herein disclosed, the one or more of the electronicdatabases include client preference and/or exclusion informationcomprising a client's one or more preferences and/or one or moreexclusions of one or more of the depository institutions to hold itsfunds. The memory for one or more of the computers storescomputer-readable instructions that, when executed, cause the one ormore computers to perform the step of determining the depositoryinstitutions in the program for allocation of tranches of the clientavailable distribution amount, D_(i), based at least in part, on theclient preference and/or exclusion information.

In one embodiment of an account allocation sequence, first amounts areallocated to the depository institutions based on one or more criteria,such as meeting reciprocity requirements, maximum caps, minimum caps,stability ratings, yields and terms of deposit, to name a few. Then therespective client tranches may be shuffled among the depositoryinstitutions to substantially equal these allocated first amounts. Notealso that the client tranches may be sorted in some defined manner,e.g., descending order based on client available distribution amount,D_(i), (highest to lowest), or sorted numerically from lowest tohighest. Thereafter, the allocation proceeds, client by client, todetermine which depository institutions will receive tranches from theclient available distribution amounts, D_(i), to purchase the timedeposit instruments.

Note also the system can reallocate client funds from a time depositinstrument to a non-time deposit instrument. This reallocation may beperformed to provide liquidity to the respective client, and/or tomaintain a desired system spread for a given transaction, or an interestrate, for example. In this respect, in one embodiment, the methodfurther comprises: reallocating funds of a first client from arespective time deposit instrument to a non-time deposit financialinstrument, and allocating funds of a second client to the respectivetime deposit instrument in place thereof; and withdrawing an amount ofthe funds of the first client from the non-time deposit financialinstrument. Thus, the system can shuffle client funds between timedeposit instruments and other financial products as desired.

As noted, in one embodiment, groupings of client tranches may be made toform purchase amounts for purchase of aggregated time depositinstruments and other financial products. The allocation method for thetranches and the formation of the purchase amounts for making the timedeposit instrument purchases at the respective depository institutionsmay, in one embodiment, be based on the size of the respective clientavailable distribution amount, D_(i), and based on allocation businessrules set for that client. Note that business rules may be attributed toa client account directly at the client account level, or to multipleaccounts at the broker or office/branch level.

In one embodiment of business rule priority, client account specificrules may be used first to direct tranches from the client availabledistribution amounts, D_(i). If the client has opted out of a particularbank, for example, because the client has funds in that bank via anaccount with another depository entity, or the client has designatedthat a first set of tranches is to be held in a particular set ofdepository institutions, then such client allocation for tranches willfollow those rules in making the allocation of that client's funds. Thendepository entity office/branch level allocation business rules of thegiven depository entity may be followed in an order subject to potentialamount limits specified by the applicable rule(s) in allocating tranchesof multiple client available distribution amounts, D_(i). The allocationof tranches of client funds may also follow certain other business rulesto minimize a volume of fund redistributions.

As noted, in some embodiments one or more safety depository institutionsmay be designated. A safety depository institution may be generally oneof the larger and/or more stable depository institutions in the program,and so is less likely to experience depository institution failure, orit may comprise a depository institution with a certain level ofcollateral. In one embodiment, the safety depository institution may beselected at the broker level. In another embodiment, it may be selectedat the client level. If a broker or system selected depositoryinstitution is opted out for a particular client, then the depositoryinstitution with the highest available capacity may be used as thesafety depository institution for that account. Note that due to opt-outand other rules, there may be multiple safety depository institutions.The safety depository institution for a given client may be selected byrule.

Referring again to FIG. 1, in one embodiment, the management system 100tracks the purchases of the aggregated or non-aggregated time depositinstruments held at the depository institutions 130-140, based oninformation generated by the management system computers, e.g., wires,messages, to name a few, and/or received by the management system 100from the depository institutions and/or from other appropriate sourcesvia contract or otherwise. The management system 100 maintainselectronic records or has maintained for it, in one or more electronicdatabases, records on each source institution and its respective clientswith funds in the depository institutions managed by the managementsystem 100.

As explained more fully below, the management system 100 mayautomatically generate reports, for example in the form of e-mailmessages, text messages, faxes, postings on prescribed web pages, toname a few, advising the source institution with the clientrelationships, of the day's purchases of aggregated or non-aggregatedtime deposit instruments and other financial products in the multipledepository institutions holding funds for clients of that depositoryentity. The management system 100 maintains or has maintained for it,computer software and/or hardware located at a main management systemsite, or at one or more remote sites that are in communication with themanagement system 100, that maintain databases and other programfunctions to track the purchases, and the aggregation into purchaseamounts, and the transfer of these purchase amounts for the purchase ofthe aggregated time deposit instruments and other depository products ineach of the depository institutions 130-140, and details of thoseinstruments and depository products. Additionally, software is providedto generate data for instructions to transfer the funds from thesedepository institutions when the term of the respective aggregated ornon-aggregated time deposit instrument has ended. Examples of suchcomputer software and/or hardware will be discussed below.

In yet a further embodiment, an audit trail of allocations andreallocations of client funds at each of the depository institutions maybe generated. In some embodiments, the system may send information thatprovides an intra day movement among depository institutions of thefunds of the individual client, to the respective individual client,and/or to the associated source institution, and/or depositoryinstitutions, and/or to any other designated outside party. The processthen creates outbound files for the depository institutions and thebroker dealers or other source institutions maintaining the clientrelationships. A depository institution distribution file sent to thedepository institution may include data for each client with funds inthe program to be held by that depository institution, and therespective balance held in one or more aggregated or non-aggregated timedeposit instruments or other financial products at the respectivedepository institution. A file may also be sent to each depositoryinstitution, which file includes the client's source institution accountnumber, a balance for that client at the depository institution and anidentification number, such as the last four digits of the client's TIN.Accordingly, the process in one embodiment, creates a transaction audittrail to record all changes in client funds and an identification of thedepository institutions and the aggregated time deposit instruments orother financial products holding those funds and the amounts of clientfunds held therein.

In yet a further embodiment, an on-the-fly report of uninsured funds isgenerated and communicated by some convenient electronic means. Theinsurance process detects whether a client's assets at a particulardepository institution are over a prescribed insurance limit or if adepository institution has deposits that exceed its collateral limit. Inthis manner, uninsured client funds will be written to the uninsuredfile to capture such client funds “on the fly.” An uninsured accountbalance report thus will include all uninsured client funds with alisting of the aggregated balance of client funds per depositoryinstitution. Likewise, for program deposits that exceed a depositoryinstitution collateral limit or cause a depository institution to exceedits collateral limit, an excess deposits report may be generated.

The system further includes a message generator that generates one ormore electronic messages and/or settlement wires regarding distributionof funds to each of the depository institutions for the purchase of theaggregated or non-aggregated time deposit instruments and otherfinancial products in the depository institutions, as well as for fundwithdrawals when the terms have expired (the time deposit instrument hasmatured) for the aggregated or non-aggregated time deposit instruments,or when a reallocation is performed to facilitate a withdrawal process,or in one embodiment, to facilitate volume withdrawal processing. In oneembodiment, the system may perform a process to request instructionsfrom a respective client or determine if instructions have been storedin the one or more databases on a reallocation of client funds obtainedfrom time deposit instruments that have matured. Such a request forinstructions may comprises an email to the client, or a letter in themail, to name a few. In one embodiment, the system may automatically, orafter instruction from the respective client or his/her broker dealer,reallocate funds from maturing time deposit instruments into other timedeposit instruments, or into other financial instruments, such asMMDA's, or NOW accounts, or DDA's, to name a few. In one embodiment,these reallocations may be to one or more financial instruments in oneor more depository institutions in accordance with a percentage setforth in the one or more databases, or in an client instruction, orbased on a tiering table, as previously described.

Note that messages may, for example, be in the form of e-mail,facsimile, text message or other form of communication, and may be sentelectronically, or by messenger, or by presentation in person, forexample. Such messages may be sent to the source institutions and/or thedepository institutions for providing notice of an action, or a requestfor approval of an action, and may include information such as, forexample, an amount received from a time deposit instrument terminationor a purchase or a withdrawal.

FIG. 2 is a block diagram showing an embodiment of a management system100 of FIG. 1, generally designated by reference number 200 in FIG. 2,according to an exemplary embodiment of the present invention. In oneembodiment, the management system 200 according to the present inventionmay be communicatively coupled to one or more networks 205 via acommunication interface 295. The one or more networks 205 may representa generic network, which may correspond to a local area network (LAN), awireless LAN, an Ethernet LAN, a token ring LAN, a wide area network(WAN), the Internet, a proprietary network, an intranet, a telephonenetwork, a wireless network, and/or cloud computing networks, to name afew, and any combination thereof. Depending on the nature of the networkemployed for a particular application, the communication interface 295may be implemented accordingly. The network 205 serves the purpose ofdelivering information between connected parties.

In one embodiment, the network 205 may comprise the Internet. The system200 may communicate purchase data, tranche allocation data, anddepository entity records to interested or authorized parties. Themanagement system 200 may also or alternatively be communicativelycoupled to a network 205 comprising a closed network (e.g., anintranet). The communication may comprise tranche allocation data andtime deposit instrument purchases and purchases of other financialproducts and depository institution records to a limited number ofreceivers, potentially with an enhanced level of security. Themanagement system 200 may be configured to communicate, via the one ormore networks 205, with respective computer systems of the one or moresource institutions, the depository institutions 130-140, and to the oneor more control operating accounts in a depository institution or in anintermediary bank 110. By way of example, such communication may be usedto manage the purchase of the time deposit instruments held at eachdepository institution and the movement of funds.

The management system 200 may comprise, in some embodiments, a computingplatform for performing, controlling, and/or initiatingcomputer-implemented operations, for example, via a server and the oneor more networks 205. The computer platform may comprise systemcomputers, as well as third party computers networked thereto. Anexemplary management system 200 may operate under the control ofcomputer-executable instructions to carry out the process stepsdescribed herein. Computer-executable instructions comprise, forexample, instructions and data which cause, when executed, a general orspecial purpose computer system or processing device to perform acertain function or group of functions. Computer software for themanagement system 200 may comprise, in an embodiment, a set of softwareobjects and/or program elements comprising computer-executableinstructions collectively having the ability to execute a thread orlogical chain of process steps in a single processor, or independentlyin a plurality of processors that may be distributed, while permitting aflow of data inputs/outputs between components and systems.

The management system 200 may include, one or more personal computers,workstations, notebook computers, servers, mobile computing devices,handheld devices, multi-processor systems, networked personal computers,minicomputers, mainframe computers, personal data assistants, tablets,Internet appliances (e.g., a computer with minimal memory, disk storageand processing power designed to connect to a network, especially theInternet, etc.), or controllers, to name a few.

The management system 200 may comprise, in one embodiment, a bus 210 orother communication component that couples various system elements220-295, and is configured to communicate information between thevarious system elements 220-295.

As shown in FIG. 2, one or more computer processors 220 may be coupledwith the bus 210 and may be configured to process and handle informationand execute instructions. The management system 200 may include a mainmemory 250, such as a Random Access Memory (RAM) or other dynamicstorage device, coupled to the bus 200, for storing information andinstructions to be executed by the one or more processors 220. The mainmemory 250 also may be used for storing temporary variables or otherintermediate information during execution of instructions by the one ormore processors 220.

The management system 200 further may include a Read-Only Memory (ROM)230 or other static storage device (e.g., EPROM, EAROM, EEPROM, PROM,flash, and the like) coupled to the bus 210 for storing staticinformation and instructions for the one or more processors 220.Furthermore, a storage device 240, such as a magnetic disk or opticaldisk, such as a CD-ROM or other optical media, may be provided andcoupled to the bus 210 for storing information and instructions.

In addition to the ROM 230, one or more databases 260 may be coupled tothe bus 210 for storing static information and software instructions.Information stored in or maintained in the databases 260 may be providedin conformance with a database management system format such as, but notlimited to, the Structured Query Language (SQL) format. Database queryand access instructions, for example, in the form of one or morescripts, may be used which, when executed by a processor such as theprocessor 220, serve to access, store and retrieve data maintained inthe database 260 according to the instructions contained in the script.

Furthermore, the management system 200 may comprise application softwareinstructions which may implement a human-machine user interface portionfor generating interactive electronic pages or display screens by whicha user may provide data to and receive information from the managementsystem 200 and the database 260. Interactive electronic pages mayinclude user dialog boxes for accepting user entered information. Inparticular, the human-machine interface may comprise a Graphical UserInterface (GUI) portion for prompting the user to enter data byproviding an interactive dialog box or message box instructing the userto enter particular data, or to select from among a multitude of optionsprovided using pull-down menus. A user may interact with the managementsystem 200 via the graphical user interface by using a pointing deviceand/or data entry device. The GUI portion may place the output of themanagement system 200 in a format for presentation to a user via thedisplay. In at least one embodiment, the GUI may be implemented as asequence of Java instructions.

A data entry device 270, including alphanumeric and other keys, or apointing device such as a mouse or trackball, or a scanner, to name afew, may be coupled to the bus 210 for communicating information andcommand selections to the processor 220. The data entry device 270 maybe coupled to the bus 210 via an interface (not shown), wherein theinterface may be, for example, a serial port, an RS-232 port, or thelike. In addition, the interface may be a wireless interface and provideconnection-less communication via, for example, Bluetooth communication.

The management system 200 may be coupled via the bus 210 to a display orprinter 290 for outputting information to a computer user. In addition,a user may use the display (e.g., touch screen) or a scanner to provideinformation to the management system 200.

According to at least one embodiment of the present invention, thevarious program operations as described herein may be provided by themanagement system 200 by the one or more processors 220 executing one ormore sequences of computer-readable instructions contained in the mainmemory 250. Such instructions may be read into the main memory 250 fromanother computer-readable medium, such as the ROM 230, the storagedevice 240, or the database 260. Execution of the sequences ofinstructions contained in the main memory 250 may cause the one or moreprocessors 220 to perform the process steps described herein. It shouldbe appreciated that an embodiment of the management system 200 mayperform fewer or additional processes as compared to those describedherein. As noted, the one or more processors 220 may be arranged in amulti-processing arrangement. Alternatively, hard-wired circuitry may beused in place of or in combination with software instructions toimplement the invention. Thus, embodiments of the invention are notlimited to any specific combination of hardware circuitry and software.

The term “computer-readable medium” or “computer-readable storagemedium,” as used herein refers to any medium that is computer-readableand participates in providing instructions to the processor 220 forexecution. Such a medium may be removable or non-removable and may takemany forms, including, but not limited to, non-volatile media andvolatile media. Non-volatile media include, for example, optical ormagnetic disks, such as the storage device 240. Volatile media includedynamic memory, such as the main memory 250. Common forms ofcomputer-readable media include, for example, floppy disk, a flexibledisk, hard disk, magnetic tape, any other magnetic medium, a CompactDisc Read Only Memory (CD-ROM), Digital Video Disc (DVD) or any otheroptical medium, punch cards, paper tape, any other physical medium withpatterns of holes, a Random Access Memory (RAM), a Programmable ReadOnly Memory (PROM), an Erasable Programmable Read Only Memory (EPROM), aFlash EPROM, any other memory chip or cartridge, or any other mediumfrom which a computer can read computer instructions. Combinations ofthe above are also included within the scope of machine-readable media.Machine-executable instructions comprise, for example, instructions anddata which cause, when executed, a general purpose computer, specialpurpose computer, or a special purpose processing machine to perform acertain function or group of functions. It should be appreciated thatthe one or more databases 260, the main memory 250, the storage device240, and the ROM 230 may, in some embodiments, be described as a“computer-readable medium” or a “computer-readable storage medium.”

As previously noted, the management system 200 also comprises acommunication interface 295 coupled to the bus 210 for providingone-way, two-way or multi-way data communication with the network 205,or directly with other devices. In one embodiment, the communicationinterface 295 may comprise a modem, a transceiver Integrated ServicesDigital Network (ISDN) card, a WAN card, an Ethernet interface, or thelike, to provide a data communication connection to a corresponding typeof communication medium. As another example, the communication interface295 may comprise a LAN card to provide a data communication connectionto a compatible LAN. Wireless links may also be implemented. In suchwireless links, communication interface 295 may communicate with a basestation communicatively coupled to a network server. In any suchimplementation, the communication interface 295 sends and receiveselectrical, electromagnetic, radio, infrared, laser, or optical signalsthat carry digital data streams representing various types ofinformation. Any combination of the above interfaces may also beimplemented.

In one embodiment, the communication interface 295 may becommunicatively coupled to a web server configured to generate andoutput web content that is suitable for display using a web browser at acomputing device. In an embodiment, the server may generate and transmitrequested information through the communication interface 295 to arequesting terminal via Hypertext Transfer Markup Language (HTML)formatted pages, eXtensible Markup Language (XML) formatted pages, orthe like, which may be provided as World Wide Web pages that may enablenavigation by hyperlinks. The server program may be used to receivecommands and data from the clients' terminals and source institutionterminals, and depository institution terminals, access and process datafrom various sources, and output computer-executable instructions anddata using the network 205. For example, code and data may becommunicated to the computers of clients, source institution, and thedepository institutions. One such downloaded application may, forexample, provide data for client available distribution distributions astranches, and may provide reporting, or message generation, as describedherein.

The web server, in one embodiment, may correspond to a secure webapplication server operating behind a web server program that a serviceprovider employs to run one or more web based application programs tocarry out the methods described above in a secure fashion. Such a secureweb application server may be configured to execute one or more webbased application programs, respond to commands and data received fromthe clients (via a web page supported by the web server), and providedata and results to the clients. The web server and the web applicationserver may be implemented using a single computing platform.Alternatively, it may be implemented using multiple separate anddistributed computing platforms.

FIG. 6 is a block diagram showing portions of at least one embodiment ofa memory configuration 600 storing programs used in the present system.This memory configuration may be applicable to the one or more databases260, the main memory 250, the storage device 240, and/or the ROM 230, ora combination thereof. The memory configuration may comprise one memory,or distributed memories. In one embodiment, the memory configuration maycomprise a reporting program 610 for generating reports on variousaspects of the system operation, including allocation activity thatidentifies each of the depository institutions holding client tranches,and how much insurance is obtained from each of these identifieddepository institutions for the client's funds held in financialinstruments therein. These reports could then be electronicallytransmitted or otherwise sent to the depository entities, clients, andthe depository institutions. The memory configuration may furthercomprise a message generator program 620 for generating messages andinstructions to the various depository institutions and other depositoryentities to initiate the movement of funds. The memory configuration mayfurther comprise a total client balance monitoring program 630 formonitoring a balance of a client held in the system. The memoryconfiguration may further comprise a tranche formation/transfer program640 for processing tranche formation and transfer for the clients. Thememory configuration may further comprise a tranche retrieval program650, for processing retrieval instructions for funds, for example, for atime deposit instrument with a term that has expired, or for processinga withdrawal from a time deposit instrument, when it has beenfacilitated through a reallocation or facilitated through a withdrawalfrom other depository instruments. The memory configuration may furthercomprise an allocation program 660 for allocating tranches to thevarious depository institutions as described herein. The memoryconfiguration may further comprise a depository institution monitoringprogram 670, for monitoring program depository institution caps andother parameters. In one embodiment, the memory configuration maycomprise a server program 680. In another embodiment, the server programis external to the system, and/or may be operated by a third party.

These respective application programs comprise a sequence of programmedinstructions which, upon execution, are operable to configure themanagement system 200 (shown in FIG. 2) to carry out the respectiveprogram operations described herein. The application programs may alsoinclude sequences of database access instructions, or scripts to effectstorage and retrieval of data using the database 250.

As noted above, embodiments of the present invention may be practiced ina networked environment using logical connections to one or more remotecomputers having processors. Logical connections may include a localarea network (LAN) and a wide area network (WAN) that are presented hereby way of example and not limitation. Such networked environments are inoffice-wide or enterprise-wide computer networks, intranets and theInternet, and may use a wide variety of different communicationprotocols. Those skilled in the art will appreciate that such networkcomputing environments will typically encompass many types of computersystem configurations, including personal computers, hand-held devices,multi-processor systems, microprocessor-based or programmable consumerelectronics, network PCs, minicomputers, mainframe computers, and thelike. Embodiments of the invention may also be practiced in distributedcomputing environments where tasks are performed by local and remoteprocessing devices that are linked (either by hardwired links, wirelesslinks, or by a combination of hardwired or wireless links) through acommunications network. In a distributed computing environment, programmodules may be located in both local and remote memory storage devices.

Embodiments of the invention have been described in the general contextof method steps which may be implemented in one embodiment by a programproduct including machine-executable instructions, such as program code,for example in the form of program modules executed by machines innetworked environments. Generally, program modules include routines,programs, objects, components, data structures, etc. that performparticular tasks or implement particular data types. Multi-threadedapplications may be used, for example, based on Java or C++.Machine-executable instructions, associated data structures, and programmodules represent examples of program code for executing steps of themethods disclosed herein. The particular sequence of such executableinstructions or associated data structures represent examples ofcorresponding acts for implementing the functions described in suchsteps.

It should be noted that although the flow charts provided herein show aspecific order of method steps, it is understood that the order of thesesteps may differ from what is depicted. Also two or more steps may beperformed concurrently or with partial concurrence. Such variation willdepend on the software and hardware systems chosen and on designerchoice. It is understood that all such variations are within the scopeof the invention. Likewise, software and web implementations of thepresent invention may be accomplished with programming techniques withrule based logic and other logic to accomplish the various databasesearching steps, correlation steps, comparison steps and decision steps.It should also be noted that the word “component” as used herein and inthe claims, is intended to encompass implementations using one or morelines of software code, and/or hardware implementations. Additionally,it is understood that the claim term “a plurality” means more than one,and is not restricted to any particular previous reference to “aplurality,” unless so indicated. Note that the term “based on” is totake its ordinary meaning as open-ended, and does not preclude otherfactors from being taken into consideration.

While this invention has been described in conjunction with theexemplary embodiments outlined above, it is evident that manyalternatives, modifications and variations will be apparent to thoseskilled in the art. Accordingly, the exemplary embodiments of theinvention, as set forth above, are intended to be illustrative, notlimiting. Various changes may be made without departing from the spiritand scope of the invention.

We claim:
 1. A method of an independent management system foradministering client funds among a plurality of depository institutionsvia communications with computer systems corresponding to the pluralityof depository institutions over one or more communication networks,comprising: A. accessing, using one or more computers, one or moreelectronic databases, stored on one or more computer-readable media,comprising: (1) client information for each of a plurality of respectiveclient accounts of respective clients, comprising information on theclient funds held through a program in the plurality of depositoryinstitutions participating in the program obtained from the computersystems corresponding to each of the plurality of depositoryinstitutions participating in the program via the communications overthe one or more communication networks, with information for arespective one of the client accounts comprising: (i) a distributionpercent value of a client deposit amount to be distributed in tranchesto each of a number of depository institutions holding funds of arespective one of the client accounts, wherein the distribution percentvalue for each of multiple of the client accounts is different; (ii) arespective balance of funds of the respective client account heldthrough the program in each of the number of the respective depositoryinstitutions holding funds of the respective client account; (iii) anon-time deposit percent value of the client deposit amount to provideavailable funds for client use; and (2) information for each of multipleFederal Deposit Insurance Corporation (FDIC)-insured aggregated timedeposit instruments holding a tranche of respective client funds,comprising: (i) a rate for the respective aggregated time depositinstrument; (ii) an identification of the depository institution holdingthe respective aggregated time deposit instrument; and (iii) a term ofthe respective aggregated time deposit instrument holding funds of therespective client account, and B. allocating the client funds among theplurality of depository institutions participating in the programthrough one or more purchases of the aggregated time deposit instrumentsby performing the following steps for multiple of the client accounts:(1) receiving from a respective one of the clients a client availabledistribution amount; (2) determining, by the one or more computers,whether the respective client meets one or more predetermined criteria;(3) upon determining that the respective client meets at least one ofthe one or more predetermined criteria, generating, by the one or morecomputers, an electronic communication to the respective client via theone or more communication networks, the electronic communicationcomprising instructions for generating an interface at a remotecomputing device to input, by the respective client, one or moreselection options corresponding to respective numbers of the depositoryinstitutions, wherein the respective numbers of the depositoryinstitutions are more than are necessary to obtain FDIC insurance forthe funds of the respective client account; (4) receiving, by the one ormore computers from the remote computing device via the one or morecommunication networks, the one or more selection options input by therespective client; (5) determining, by the one or more computers, anupdated number of depository institutions based on the received one ormore selection options; (6) determining, using the one or morecomputers, an amount of the client tranche to be deposited in each ofthe updated number of the depository institutions for the respectiveclient account based at least in part on the distribution percent valuefor the respective client account and the client available distributionamount for the respective client account, in order that the clienttranches are approximately equal for the respective client account; (7)allocating substantially equally, using the one or more computers, therespective client tranches determined for the respective client accountto the updated number of the depository institutions for the respectiveclient account; (8) generating, using the one or more computers, datafor instructions to transfer the respective client tranches, to be addedto client tranches of other clients, to purchase one or more aggregatedtime deposit instruments at each of the updated number of the depositoryinstitutions; (9) determining, using the one or more computers, anon-time deposit amount to be distributed across one or more of thedepository institutions based at least in part on a non-time depositpercentage and the respective client available distribution amount forthe respective client account; (10) allocating, using the one or morecomputers, the non-time deposit amount across one or more of thedepository institutions; (11) generating, using the one or morecomputers, data for instructions to transfer the respective non-timedeposit amount to the one or more of the depository institutions to beadded to non-time deposit amounts of other client accounts to purchaseone or more aggregated non-time deposit financial instruments; (12)updating, using the one or more computers, one or more of the electronicdatabases with update data for each of multiple of the client accounts,with the update data for each of the multiple client accounts comprisingdata for the respective client tranches transferred to purchase the oneor more aggregated time depository instruments at the updated number ofthe depository institutions for the respective client account and updatedata on the non-time deposit amount allocated across the one or more ofthe depository institutions for one or more aggregated non-time depositfinancial instruments; C. accommodating one or more early withdrawalsfrom one or more of the client accounts by: (1) reallocating, by the oneor more computers, funds of the one or more client accounts from arespective one of the aggregated time deposit instruments holding fundsof the one or more client accounts to one of the one or more aggregatednon-time deposit financial instruments holding funds of the one or moreclient accounts, when a request to withdraw funds from or on behalf ofthe respective client or another client is received before a term forthe aggregated time deposit instrument holding funds of the one or moreclient accounts has been completed; (2) allocating, by the one or morecomputers, funds of at least a second one of the client accounts to therespective aggregated time deposit instrument in place of thereallocated funds of the one or more client accounts; and (3)withdrawing, using the one or more computers, an amount of the funds ofthe one or more client accounts from the aggregated non-time depositfinancial instrument.
 2. The method as defined in claim 1, furthercomprising: determining, using the one or more computers, whether therespective client or another client meets one or more withdrawalcriteria, where one of the one or more withdrawal criteria comprises abalance of funds of the client held through the program.
 3. The methodas defined in claim 1, further comprising: determining, using the one ormore computers, whether the respective client or another client meetsone or more withdrawal criteria, where one of the one or more withdrawalcriteria comprises a stability level of the client's funds held in theprogram relative to a threshold.
 4. The method as defined in claim 1,further comprising: determining, using the one or more computers,whether the respective client or another client meets one or morewithdrawal criteria, where one of the one or more withdrawal criteriacomprises a total amount of funds held in the program by a sourceinstitution associated with the client.
 5. The method as defined inclaim 1, wherein the aggregated time deposit instruments holding thetranches may comprise one or more selected from the group of bonds,treasury bills, and certificates of deposit.
 6. The method as defined inclaim 1, further comprising: determining client eligibility for havingthe client available distribution amount distributed in tranches amongthe number of the depository institutions that is more than arenecessary to obtain FDIC insurance for the funds of the respectiveclient account, based on one or more selection criteria; aggregating,using the one or more computers, the respective client tranches ofmultiple of the different client accounts that are determined to beeligible, to form a plurality of respective purchase amounts to purchaserespective aggregated time deposit instruments from multiple respectiveselected depository institutions; and generating data for instructionsto transfer the respective purchase amounts to the respective selecteddepository institutions.
 7. The method as defined in claim 6, whereinone eligibility criterion is that only client tranches from clientavailable distribution amounts above a threshold amount, are aggregatedinto the respective purchase amounts for purchase of the aggregated timedeposit instruments from the multiple depository institutions.
 8. Themethod as defined in claim 6, wherein one eligibility criterion is thatonly client tranches from client available distribution amountsassociated in the one or more databases with a particular sourceinstitution are aggregated into the respective purchase amounts forpurchase of the aggregated time deposit instruments from the multipledepository institutions.
 9. The method as defined in claim 6, whereinone eligibility criterion comprises a relationship level with one of thedepository institutions.
 10. The method as defined in claim 1, furthercomprising: purchasing the aggregated time deposit instrumentelectronically using the one or more computers and via one or moreelectronic networks.
 11. The method as defined in claim 1, furthercomprising: receiving an order from a respective one of the depositoryinstitutions that is a source institution to distribute one or moreclient available distribution amounts of funds of clients of therespective source depository institution, for the purchase of aplurality of aggregated time deposit instruments; wherein the one ormore databases further comprise information designating a sourcedepository institution for each of multiple of the respective clientavailable distribution amounts; and wherein the (B)(7) allocating stepfurther comprises: selecting, using the one or more computers, at leastone of the depository institutions participating in the program forpurchase of one or more aggregated time deposit instruments based, atleast in part, on whether or not one or more orders have been receivedfrom the respective at least one depository institution to distributeone or more client available distribution amounts of clients of thatrespective one depository institution for the purchase of a plurality ofaggregated financial instruments at other of the depository institutionsparticipating in the program.
 12. The method as defined in claim 11,wherein the selecting of the at least one depository institution for thepurchase of one or more aggregated time deposit instruments is furtherbased, at least in part, on whether a total of the one or more clientavailable distribution amounts of funds received from the respective atleast one depository institution and distributed to other depositoryinstitutions in the program, is more than an amount that the respectiveat least one depository institution has received in client tranchesassociated with other source institutions participating in the program.13. The method as defined in claim 1, wherein the one or more databasesfurther comprise data on a source institution for each of a plurality ofthe client available distribution amounts; and further comprising:selecting, using the one or more computers, one or more of thedepository institutions for the purchase of one or more aggregated timedeposit instruments based, at least in part, on whether the respectivedepository institution is affiliated with the source institution for oneor more of the client available distribution amounts to be used topurchase the one or more aggregated time deposit instruments;aggregating, using the one or more computers, the respective clienttranches of multiple of the different clients into a plurality ofrespective purchase amounts to purchase respective aggregated timedeposit instruments from the multiple respective selected depositoryinstitutions; and generating data, using the one or more computers, forinstructions to transfer the respective purchase amounts to therespective selected depository institutions.
 14. The method as definedin claim 1, further comprising: determining, using the one or morecomputers, a fee for facilitating purchases of time deposit instrumentsand other depository instruments determined at least in part oncomparing the client available distribution amount to threshold amountsset forth in a tier table.
 15. The method as defined in claim 1, whereinthe receiving at least one client available distribution amount is viathe Internet.
 16. The method as defined in claim 1, wherein thereceiving at least one client available distribution amount is from asweep file via an electronic network.
 17. The method as defined in claim1, wherein the non-time deposit amount is distributed across multiple ofthe depository institutions.
 18. The method as defined in claim 17,wherein the (B)(10) allocating of the non-time deposit amount comprisesallocating an equal amount to each of the multiple of the depositoryinstitutions to receive funds from the non-time deposit amount.
 19. Anindependent management system for administering client funds among aplurality of depository institutions via communications with computersystems corresponding to the plurality of depository institutions overone or more communication networks, comprising: one or more computerscomprising memory wherein the memory stores computer readableinstructions comprising program code that, when executed, cause the oneor more computers to perform the steps: A. accessing, using one or morecomputers, one or more electronic databases, stored on one or morecomputer-readable media, comprising: (1) client information for each ofa plurality of respective client accounts of respective clients,comprising information on the client funds held through a program in theplurality of depository institutions participating in the programobtained from the computer systems corresponding to each of theplurality of depository institutions participating in the program viathe communications over the one or more communication networks, withinformation for a respective one of the client accounts comprising: (i)a distribution percent value of a client deposit amount to bedistributed in tranches to each of a number of depository institutionsholding funds of a respective one of the client accounts, wherein thedistribution percent value for each of multiple of the client accountsis different; (ii) a respective balance of funds of the respectiveclient account held through the program in each of the number of therespective depository institutions holding funds of the respectiveclient account; (iii) a non-time deposit percent value of the clientdeposit amount to provide available funds for client use; and (2)information for each of multiple Federal Deposit Insurance Corporation(FDIC)-insured aggregated time deposit instruments holding a tranche ofrespective client funds, comprising: (i) a rate for the respectiveaggregated time deposit instrument; (ii) an identification of thedepository institution holding the respective aggregated time depositinstrument; and (iii) a term of the respective aggregated time depositinstrument holding funds of the respective client account, and B.allocating the client funds among the plurality of depositoryinstitutions participating in the program through one or more purchasesof the aggregated time deposit instruments by performing the followingsteps for multiple of the client accounts: (1) receiving from arespective one of the clients a client available distribution amount;(2) determining, by the one or more computers, whether the respectiveclient meets one or more predetermined criteria; (3) upon determiningthat the respective client meets at least one of the one or morepredetermined criteria, generating, by the one or more computers, anelectronic communication to the respective client via the one or morecommunication networks, the electronic communication comprisinginstructions for generating an interface at a remote computing device toinput, by the respective client, one or more selection optionscorresponding to respective numbers of the depository institutions,wherein the respective numbers of the depository institutions are morethan are necessary to obtain FDIC insurance for the funds of therespective client account; (4) receiving, by the one or more computersfrom the remote computing device via the one or more communicationnetworks, the one or more selection options input by the respectiveclient; (5) determining, by the one or more computers, an updated numberof depository institutions based on the received one or more selectionoptions; (6) determining, using the one or more computers, an amount ofthe client tranche to be deposited in each of the updated number of thedepository institutions for the respective client account based at leastin part on the distribution percent value for the respective clientaccount and the client available distribution amount for the respectiveclient account, in order that the client tranches are approximatelyequal for the respective client account; (7) allocating substantiallyequally, using the one or more computers, the respective client tranchesdetermined for the respective client account to the updated number ofthe depository institutions for the respective client account; (8)generating, using the one or more computers, data for instructions totransfer the respective client tranches, to be added to client tranchesof other clients, to purchase one or more aggregated time depositinstruments at each of the updated number of the depositoryinstitutions; (9) determining, using the one or more computers, anon-time deposit amount to be distributed across one or more of thedepository institutions based at least in part on the non-time depositpercentage and the respective client available distribution amount forthe respective client account; (10) allocating, using the one or morecomputers, the non-time deposit amount across one or more of thedepository institutions; (11) generating, using the one or morecomputers, data for instructions to transfer the respective non-timedeposit amount to the one or more of the depository institutions to beadded to non-time deposit amounts of other client accounts to purchaseone or more aggregated non-time deposit financial instruments; (12)updating, using the one or more computers, one or more of the electronicdatabases with update data for each of multiple of the client accounts,with the update data for each of the multiple client accounts comprisingdata for the respective client tranches transferred to purchase the oneor more aggregated time depository instruments at the updated number ofthe depository institutions for the respective client account and updatedata on the non-time deposit amount allocated across the one or more ofthe depository institutions for one or more aggregated non-time depositfinancial instruments; C. accommodating one or more early withdrawalsfrom one or more of the client accounts by: (1) reallocating, by the oneor more computers, funds of the one or more client accounts from arespective one of the aggregated time deposit instruments holding fundsof the one or more client accounts to one of the one or more aggregatednon-time deposit financial instruments holding funds of the one or moreclient accounts, when a request to withdraw funds from or on behalf ofthe respective client or another client is received before a term forthe aggregated time deposit instrument holding funds of the one or moreclient accounts has been completed; (2) allocating, by the one or morecomputers, funds of at least a second one of the client accounts to therespective aggregated time deposit instrument in place of thereallocated funds of the one or more client accounts; and (3)withdrawing, using the one or more computers, an amount of the funds ofthe one or more client accounts from the aggregated non-time depositfinancial instrument.
 20. The system as defined in claim 19, wherein thememory further comprises program code that, when executed, cause the oneor more computers to perform the step: determining, using the one ormore computers, whether the respective client or another client meetsone or more withdrawal criteria, where one of the one or more withdrawalcriteria comprises a balance of funds of the client held through theprogram.
 21. The system as defined in claim 19, wherein the memoryfurther comprises program code that, when executed, cause the one ormore computers to perform the steps: determining client eligibility forhaving the client available distribution amount distributed in tranchesamong the number of the depository institutions that is more than arenecessary to obtain FDIC insurance for the funds of the respectiveclient account, based on one or more selection criteria; aggregating,using the one or more computers, the respective client tranches ofmultiple of the different client accounts that are determined to beeligible, to form a plurality of respective purchase amounts to purchaserespective aggregated time deposit instruments from multiple respectiveselected depository institutions; and generating data for instructionsto transfer the respective purchase amounts to the respective selecteddepository institutions.
 22. The system as defined in claim 19, whereinthe memory further comprises program code that, when executed, cause theone or more computers to perform the steps: receiving an order from arespective one of the depository institutions that is a sourceinstitution to distribute one or more client available distributionamounts of funds of clients of the respective source depositoryinstitution, for the purchase of a plurality of aggregated time depositinstruments; wherein the one or more databases further compriseinformation designating a source depository institution for each ofmultiple of the respective client available distribution amounts; andwherein the (B)(7) allocating step further comprises: selecting, usingthe one or more computers, at least one of the depository institutionsparticipating in the program for purchase of one or more aggregated timedeposit instruments based, at least in part, on whether or not one ormore orders have been received from the respective at least onedepository institution to distribute one or more client availabledistribution amounts of clients of that respective one depositoryinstitution for the purchase of a plurality of aggregated financialinstruments at other of the depository institutions participating in theprogram.
 23. A non-transitory computer-readable medium comprisingprogram code for execution by one or more computers to embody anindependent management system for administering client funds among aplurality of depository institutions via communications with computersystems corresponding to the plurality of depository institutions overone or more communication networks, the program code comprisinginstructions to perform the steps: A. accessing, using the one or morecomputers, one or more electronic databases, stored on one or morecomputer-readable media, comprising: (1) client information for each ofa plurality of respective client accounts of respective clients,comprising information on the client funds held through a program in theplurality of depository institutions participating in the programobtained from the computer systems corresponding to each of theplurality of depository institutions participating in the program viathe communications over the one or more communication networks, withinformation for a respective one of the client accounts comprising: (i)a distribution percent value of a client deposit amount to bedistributed in tranches to each of a number of depository institutionsholding funds of a respective one of the client accounts, wherein thedistribution percent value for each of multiple of the client accountsis different; (ii) a respective balance of funds of the respectiveclient account held through the program in each of the number of therespective depository institutions holding funds of the respectiveclient account; (iii) a non-time deposit percent value of the clientdeposit amount to provide available funds for client use; and (2)information for each of multiple Federal Deposit Insurance Corporation(FDIC)-insured aggregated time deposit instruments holding a tranche ofrespective client funds, comprising: (i) a rate for the respectiveaggregated time deposit instrument; (ii) an identification of thedepository institution holding the respective aggregated time depositinstrument; and (iii) a term of the respective aggregated time depositinstrument holding funds of the respective client account, and B.allocating the client funds among the plurality of depositoryinstitutions participating in the program through one or more purchasesof the aggregated time deposit instruments by performing the followingsteps for multiple of the client accounts: (1) receiving from arespective one of the clients a client available distribution amount;(2) determining, by the one or more computers, whether the respectiveclient meets one or more predetermined criteria; (3) upon determiningthat the respective client meets at least one of the one or morepredetermined criteria, generating, by the one or more computers, anelectronic communication to the respective client via the one or morecommunication networks, the electronic communication comprisinginstructions for generating an interface at a remote computing device toinput, by the respective client, one or more selection optionscorresponding to respective numbers of the depository institutions,wherein the respective numbers of the depository institutions are morethan are necessary to obtain FDIC insurance for the funds of therespective client account; (4) receiving, by the one or more computersfrom the remote computing device via the one or more communicationnetworks, the one or more selection options input by the respectiveclient; (5) determining, by the one or more computers, an updated numberof depository institutions based on the received one or more selectionoptions; (6) determining, using the one or more computers, an amount ofthe client tranche to be deposited in each of the updated number of thedepository institutions for the respective client account based at leastin part on the distribution percent value for the respective clientaccount and the client available distribution amount for the respectiveclient account, in order that the client tranches are approximatelyequal for the respective client account; (7) allocating substantiallyequally, using the one or more computers, the respective client tranchesdetermined for the respective client account to the updated number ofthe depository institutions for the respective client account; (8)generating, using the one or more computers, data for instructions totransfer the respective client tranches, to be added to client tranchesof other clients, to purchase one or more aggregated time depositinstruments at each of the updated number of the depositoryinstitutions; (9) determining, using the one or more computers, anon-time deposit amount to be distributed across one or more of thedepository institutions based at least in part on the non-time depositpercentage and the respective client available distribution amount forthe respective client account; (10) allocating, using the one or morecomputers, the non-time deposit amount across one or more of thedepository institutions; (11) generating, using the one or morecomputers, data for instructions to transfer the respective non-timedeposit amount to the one or more of the depository institutions to beadded to non-time deposit amounts of other client accounts to purchaseone or more aggregated non-time deposit financial instruments; (12)updating, using the one or more computers, one or more of the electronicdatabases with update data for each of multiple of the client accounts,with the update data for each of the multiple client accounts comprisingdata for the respective client tranches transferred to purchase the oneor more aggregated time depository instruments at the updated number ofthe depository institutions for the respective client account and updatedata on the non-time deposit amount allocated across the one or more ofthe depository institutions for one or more aggregated non-time depositfinancial instruments; C. accommodating one or more early withdrawalsfrom one or more of the client accounts by: (1) reallocating, by the oneor more computers, funds of the one or more client accounts from arespective one of the aggregated time deposit instruments holding fundsof the one or more client accounts to one of the one or more aggregatednon-time deposit financial instruments holding funds of the one or moreclient accounts, when a request to withdraw funds from or on behalf ofthe respective client or another client is received before a term forthe aggregated time deposit instrument holding funds of the one or moreclient accounts has been completed; (2) allocating, by the one or morecomputers, funds of at least a second one of the client accounts to therespective aggregated time deposit instrument in place of thereallocated funds of the one or more client accounts; and (3)withdrawing, using the one or more computers, an amount of the funds ofthe one or more client accounts from the aggregated non-time depositfinancial instrument.
 24. The non-transitory computer-readable medium asdefined in claim 23, further comprising program code that, whenexecuted, cause the one or more computers to perform the step:determining, using the one or more computers, whether the respectiveclient or another client meets one or more withdrawal criteria, whereone of the one or more withdrawal criteria comprises a balance of fundsof the client held through the program.
 25. The non-transitorycomputer-readable medium as defined in claim 23, further comprisingprogram code that, when executed, cause the one or more computers toperform the steps: determining client eligibility for having the clientavailable distribution amount distributed in tranches among the numberof the depository institutions that is more than are necessary to obtainFDIC insurance for the funds of the respective client account, based onone or more selection criteria; aggregating, using the one or morecomputers, the respective client tranches of multiple of the differentclient accounts that are determined to be eligible, to form a pluralityof respective purchase amounts to purchase respective aggregated timedeposit instruments from multiple respective selected depositoryinstitutions; and generating data for instructions to transfer therespective purchase amounts to the respective selected depositoryinstitutions.